Swiss President Olli Maurer said that the cryptocurrency project "Libra", which is being adopted by Facebook, failed in its current form, and that it must be modified for approval.
"I don't think (Libera has an opportunity in its current form), because central banks will not accept the basket of currencies that support them," added Maurer, who is also Switzerland's finance minister, as well as his outgoing president, speaking to the Swiss Broadcasting Corporation. "The project, in its current form, has failed."
The Libera Foundation, which is seeking regulatory approval of the cryptocurrency in Switzerland, has yet to respond to a request for comment.
The digital currency plans, led by Facebook, to be issued and organized by the Geneva-based Libera Foundation, have raised concerns among regulators and politicians regarding aspects such as privacy and their potential impact on monetary policies and changing the global financial landscape.
Those responsible for managing the project, including one of its creators, David Marcus, from Facebook, say that "the regulatory obstacles may delay the launch until after next June, the planned date."
The cryptocurrency will be backed by an asset reserve such as bank deposits and government debt in the possession of a network of trustees. This structure aims to enhance confidence and avoid price fluctuations in other cryptocurrencies.