In a news release on Oct. 16, the Swiss Federal Council stated that it was recently informed about “current opportunities and challenges associated with stablecoins” and that Switzerland will continue to monitor new digital technology developments, such as blockchain and distributed ledger technology.
The Federal Council states that, while the mountainous European country is generally seen as very crypto-friendly and “open to innovative approaches in the financial market,” it remains committed to addressing the risks related to stablecoins and cryptocurrencies, saying:
“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.”
The seven-member executive council further noted that Facebook’s Libra coin, which is to be overseen by the Geneva-based Libra Association, would be exposed to limited volatility thanks to being backed by a basket of stable fiat currencies. Read more…