Facebook registers a cryptocurrency company, Libra, in Switzerland

Facebook seems to be holding true to their dream of launching its cryptocurrency. The US social media company has been doing all it can to have its own cryptocurrency as soon as possible with founder Mark Zuckerberg pointing out that blockchain technology is the next big thing.

Facebook is said to have registered a company by the name Libra in Switzerland on May 2, where Facebook Global Holdings will be a stockholder. It is expected that Facebook will support the company both financially and with technology to come up with the necessary hardware and software to launch a cryptocurrency.

On May 14, the company hired two compliance managers from Coinbase, giving the clearest indications that it hit the road running towards achieving the goal of having its own cryptocurrency.

However, there have been concerns as to why Facebook had to register the company outside of the US. According to experts, it has to do with the lack of proper regulations of cryptocurrencies in the US. Switzerland, on the other hand, is seen as a haven for crypto developers due to their welcoming guidelines on cryptocurrencies.

Also, Switzerland has allowed ICO startups to use ICOs and even gone an extra mine to design guidelines for the same. This provides Libra with the appropriate environment for the next phase which most likely would be to raise finances for the project. There are actually rumors that the company could be anticipating to raise over $1billion for the entire project and the most probable way of raising such a huge amount of money currently is through an ICO. Switzerland and Singapore remain to be the best places for crypto startups especially after China and South Korea banned ICOs.

Even so, the US Congress sent out an open letter to the company asking it to come clean on the intended use of the digital currency and also its implications. The letter reads:

“The Wall Street Journal recently reported that Facebook is recruiting dozens of financial firms and online merchants to help launch a cryptocurrency-based payments system using its social network. Last year, Facebook asked U.S. banks to share detailed financial information about consumers. In addition, privacy experts have raised questions about Facebook’s extensive data collection practices and whether any of the data collected by Facebook is being used for purposes that do or should subject Facebook to the Fair Credit Reporting Act.”

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