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Geneva, Switzerland – The Libra Association* has formally initiated the payment system licensing process with the Swiss Financial Markets Supervisory Authority (FINMA). Initiating the licensing process is an important milestone as the Libra Association moves forward to a more operational phase of the project. The licensing process has, and will continue to have, input from central banks and other financial regulatory, supervisory and enforcement authorities around the world who have been brought together as a part of FINMA’s regulatory supervisory college.
Since the initial release of the Libra Association white paper in June 2019, the Libra Association has consulted and engaged with numerous global stakeholders and has incorporated key items of feedback into the design of the Libra payment system. This includes the ability of the Libra payment system to offer single-currency stablecoins in addition to the multi-currency Libra coin. Additionally, the Libra Association has adopted an open and competitive permissioned blockchain that foregoes the future transition to a permissionless system but maintains many of the economic and governance properties of the original design. Finally, the Libra Association has enhanced the safety of the Libra payment system with a robust framework for financial compliance and network-wide risk management, as well as strong standards for anti-money laundering, combating the financing of terrorism, and the prevention of illicit activities. Details are available in an updated Libra Association white paper.
In addition to applying for the FINMA license and updating the white paper, the near-term operating expenses of Libra Association have now been funded by its members.
The Libra Association is a Swiss independent member organization, consisting of geographically distributed and diverse businesses and nonprofit organizations. The Libra Association is developing a blockchain-based payment system supporting financial inclusion and responsible financial services innovation.
*On December 1, 2020, the Libra Association was renamed to Diem Association.