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In its current form, Libra has failed, says Swiss president

In its current form, Libra has failed, says Swiss president

According to the President of Switzerland, the basket of assets used to back stablecoin Libra needs to change for the project to be accepted by regulators.

On the 27th of December, Reuters reported that Swiss President Ueli Maurer said that Libra wouldn't be approved in its current form. Reason for the rejection would be the basket of currencies which is used to back the stablecoin. He concluded: "The project, in this form, has thus failed".

Libra's clash with regulators

On the 13th of December, Libra's whitepaper was updated. The update removed the dividends payable to members of the Libra Association, apart from eradicating a potential conflict of interest. The main reason for the change is thought to avoid the asset being perceived as a security by regulators.

Whether by chance or not. The announcement came after United States lawmakers announced a bill defining stablecoins as securities. Libra, however, persists that its stablecoin is a commodity.

The US law is not the only regulatory setback for Libra. A draft document to be discussed by the European Union's finance ministers states that blocking Libra's development is a possibility. Also last month, Libra announced that despite the regulatory concern over the project, the development has gone forward. Around 30 projects and 51.000 transactions having already been logged on the test network over the two previous months.