Facebook’s Libra has failed in current form, says Swiss president

The Swiss position will be a disappointment for Mark Zuckerberg, chairman and CEO of Facebook Keystone

Facebook’s Libra project needs reworking to be approved, according to the president of Switzerland, where the cryptocurrency is seeking regulatory consent. 

“I don’t think [Libra has a chance in its current form], because central banks will not accept the basket of currencies underpinning it,” Finance Minister Ueli Maurer, who held the rotating presidency in 2019, told Swiss public radio, SRFExternal link. 

“The project, in this form, has thus failed,” he said. 

Libra did not immediately respond to a request for comment. 

Plans for the Facebook-led digital currency, which is to be issued and governed by the Geneva-based Libra Association, have raised concerns among regulators and politicians ranging from privacy to its potential to influence monetary policy and change the global financial landscape. 

Officials running the project, including co-creator David Marcus of Facebook, have said regulatory hurdles could see the launch delayed beyond the planned June date. 

The cryptocurrency is to be backed by a reserve of assets such as bank deposits and government debt held by a network of custodians. That structure is meant to foster trust and avoid the price swings that plague other cryptocurrencies.