GENEVA (reuters) – The launch of Facebook, the Scale could be pushed back to the issue of the regulatory concerns that have been raised around the world, the head of the organization was established in order to monitor the cryptocurrency, told Reuters.
FILE PICTURE: A 3D-printed Facebook Scale cryptocurrency’s logo is seen in front of the display and German flag on it in this picture, the 13th of September 2019. REUTERS/dado Ruvic/File Photo
Three months ago, Facebook (FB.R), announced the launch of the digital currency in June of 2020, in co-operation with the other members of the balance team established by the US-based tech giant to manage the project.
However, this attempt to drag cryptocurrencies into the mainstream has been met with regulatory and political scepticism across the world, with France and Germany in pledging to block activity of the operations in Europe.
Bertrand Perez, executive director of the Geneva-based Scale of the Association, said that the discussions are being pursued with the regulators in Europe and elsewhere to assuage concerns.
“That’s when we made the announcement back in June, that was our North Star,” Perez said in June 2020, start date, and add a delay of one or two quarters of this year, it would not be a problem.
“What is important is that we need to have in order to satisfy the regulators, and we need to make sure that they are on board with us and are completely comfortable with our solutions.”
“We knew that we would have to answer a lot of questions coming from the regulatory bodies on both sides of the Atlantic, as well as from other parts of the world,” he said in an interview at the United Nations offices in Geneva.
Scales have been announced, as Facebook expands into e-commerce, you will be backed by a pool of real-world assets, including bank deposits and short-term government securities, and, under the supervision of the 28 members of the association.
The structure has been designed in order to boost confidence and stabilize the volatility of the prices of which are pests of cryptocurrencies, and that makes them impractical for trade and payments.
Last week, David Marcus, the executive of the project at Facebook, said the company is still focused on the launch of the digital currency in the year 2020.
“The goal is still to launch, from the Scale of next year,” he told the Swiss newspaper NZZ. “Until then, we’ll have to deal with all of the questions are adequate to make the appropriate laws, rules, and regulations.”
The association has so far taken a backseat to Facebook in the visibility of the project, but Perez insisted it was independent from the social media giant, which will have an equal vote as the other members of the association’s decision-making process.
The other members of the association include, among others, Vodafone’s (VOD.(L), PayPal (PYPL.R) and Mastercard (MA.(N) and Visa (V. N.), and the company is planning to bring more members on board in the near future, is expected to be the banks.
“It is well known that the project was incubated at Facebook and started Facebook, but it is in a very early stage, there was a decree that this should be a public good, that is not controlled by a single entity,” said Perez, a senior director for payments engineering at PayPal, and before you start in on the Scale, it’s possible.
“The Scale of Association is evident in a society and not a subsidiary of Facebook.”
Reporting by Brenna Hughes Neghaiwi; Editing by Stephanie Nebehay and John Miller, and Pravin Char