FINMA is specifying the regulation of stable coins, formulating high requirements and also taking a stand on Libra. The comments cast doubt on the short-term launch of Libra in the first half of 2020, especially as other national regulators (particularly Germany and France) are explicitly positioning themselves on Libra and first members of the Association are questioning their support.
At the same time, the Chinese stable coin developed in the state-initiated DC/EP (Digital Currency/Electronic Payments) project remains largely unnoticed by the media in Europe and the USA. Although the danger of the international central banking system being undermined by DC/EP is not perceived as acute, the "China-Coin" is still controversial due to its potential for political abuse.
The market, regulation and supervision in the USA and Europe, however, have yet to provide their own answer to the gap in supply for efficient, scalable digital currencies addressed by Libra and DC/EP.
On 14th September 2019, the obligations for strong customer authentication of the PSD2 will take effect. As a reaction to the ongoing discussion since then and the continuing lack of clarity regarding the interpretation of the implementation requirements specified in the final "Regulatory Technical Standards (RTS)", the EBA published a further position paper on 21st June 2019 - less than three months before the RTS came into force - which, according to the EBA, was the final position paper.
The Libra Association, an organization of currently 28 institutional members from various industries, has announced the launch of a crypto currency called "Libra" in 2020. Among the independent members is Facebook, which is currently the major driving force until the official launch and is planning with its subsidiary "Calibra" to release a wallet of the same name for Libra. The project is therefore often mistakenly referred to as "Facebook currency", but the actual scope and motivation, according to the recent white paper published by the Libra Association, goes far beyond that.
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