The relationship between Facebook and Switzerland seems to be getting into full swing. The country was the venue chosen by the company to establish the Libra Association, subsidiary responsible for the stablecoin released in June by the company. But why did Facebook choose Switzerland for the Libra?
Facebook has developed the Libra aiming to make it a rival of the bitcoin, with less volatility. So, the currency is pegged to available currency exchanges and securities. While economic experts and politicians around the world are concerned with the new asset, the Secretary of State for International Finances of Switzerland faced the movement favorably. According to the government body, this is a “positive sign that Switzerland can play an important role in an ambitious international project”.
Facebook chose Switzerland for the Libra due to its favorable environment
According to Switzerland’s economic development Chief, Pierre Maudet, the city of Geneva is “excited” to work with Facebook. Thus, the presence of the company in the country reflects Switzerland’s favorable approach towards the regulation.
In addition, it shows an enthusiasm for the digital currency that is not common in all locations. Normally, countries fear the expansion of the cryptocurrencies market, whether for security issues or for threatening the value of local currencies.
The new project made the Swiss politicians get even more enthusiastic about the potential of Crypto Valley, one of the most important ecosystems of cryptocurrencies and blockchain in the world. Located in the Swiss town of Zug, and working with low taxes, the project has been gaining space and looks promising.
According to Dante Disparte, spokesman for the Libra´s project, Switzerland earned Facebook´s support for being a place to connect with civil society and international organizations. “Our goal is to administer the Libra, the technology and the digital currency as a public property. Therefore, there was no better place than Switzerland to develop a global project like this”, he said in an interview published in Swissinfo.