Libra

In June 2019, Facebook announced the creation of the new Libra cryptocurrency, which is to be overseen by the Geneva-based Libra Association. As a stablecoin Libra's volatility should be limited.

On 16 April 2020 the Swiss Financial Market Supervisory Authority FINMA announced that it had received an application for a payment system licence from the Geneva-based Libra Association. The outcome and duration of the procedure remain open.

The Federal Council is keeping a very close eye on global stablecoin projects and their associated opportunities and risks, especially in the areas of financial stability, the fight against money laundering and terrorist financing, monetary and currency policy and data protection. The Federal Council is committed to ensuring that the currency and stability policy challenges, in particular, are addressed through international cooperation between governments, central banks and supervisory authorities, with private providers also included.

In October 2020, the Financial Stability Board (FSB) published recommendations on the regulation, supervision and control of global stablecoins. Switzerland has actively participated in this work.

Recommendations FSB