Right now, it is vital for cryptocurrencies to gain some regulatory “love”, otherwise the future of digital coins is bleak. Just now, the US suggested that they will discourage tech companies from issuing digital currencies, and it seems by all means that Donald Trump, the US President, is not a fan of crypto.
Probably the giant in the tech and social space, Facebook, has the most to gain from launching its cryptocurrency called Project Libra. With a user base of billions of people, Facebook will have enormous amount of control with Libra and regulators are currently on the lookout for any potential issues related to Libra.
The major question is: Who will regulate the mass crypto “project”? According to a post from Morningstar, Facebook has announced that Libra will be regulated by the Switzerland financial regulatory body. The company has also stressed the fact that there will be no undermining of central banks and national currencies.
The concern regarding the regulatory aspect of launching Libra is huge. The Senate is thinking that Facebook should postpone the project until Washington gives the green light and is satisfied with the regulatory oversight that Libra will be under.
Mr. David Markus, an executive at Facebook, said the following regarding Libra:
We know we need to take the time to get this right. Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals.
It also becomes clear at this stage that the primary regulatory for Libra will be none but the Swiss Financial Markets Supervisory Authority. The reason for this decision? The group in charge of the project is actually based in Geneva. And it is one impressive group, truly. Companies in the group include MasterCard, eBay, Anchorage and many more. So, as Morningstar reported, once Libra takes off, Facebook will probably not have the full control over the currency.