The Swiss president said that the Facebook project adopted by Libra has failed in its current form and needs to 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," said Olli 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, failed," Maurer said in an interview.
The Libera Foundation, which is seeking regulatory approval for the cryptocurrency in Switzerland, has yet to respond to a request for comment.
Facebook-led digital currency plans, 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.
Project managers, including one of its creators, David Marcus of Facebook, say regulatory hurdles may delay the launch beyond the planned June date.
The cryptocurrency will be backed by an asset reserve such as bank deposits and government debt held by a network of trustees. This structure aims to enhance confidence and avoid price fluctuations experienced by other cryptocurrencies.
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