Facebook's cryptocurrency project Libra is plowing ahead with plans for a regulated payments system. Switzerland remains the linchpin of its plans.

Swiss financial regulator Finma is reviewing an application for Libra to set up a payments system, it said in a statement on Thursday. The move comes as the Facebook-backed project scales back initial ambitions for a global digital currency into a more traditional payment network, as «The Information» (behind paywall) reported last month. 

«The application filed differs considerably from the project originally submitted, e.g. with a view to the Libra payment system also supporting single-currency stable coins as well as the multi-currency Libra payment token,» Finma said. An earlier project had been soundly rejected by Swiss officials, as finews.com reported.

Akin to Paypal

Libra surprised Swiss officials with plans to set up shop in Geneva as an association – a specific and lightly regulated Swiss legal form. Switzerland has been broadly receptive to the nascent blockchain and crypto industry, while influential policymakers have been critical of Libra specifically.

According to media reports, Libra is now aiming for a payments system of coins tied to a local currency, akin to a Paypal account. Its initial ambitions were scaled back following widespread pushback to Libra's planned scope, the outlet reported. Big corporate backers like Ebay, Mastercard, and Visa also jumped ship.

Closely Linked

Finma said it will evaluate Libra's application, first reported by the «New York Times» earlier on Tuesday, and levy extra requirements for additional services that pose increased risks – such as those in traditional banking. The Swiss supervisor said it will scrutinize whether Libra can meet national and international standards for payment infrastructures and for combating money laundering.

Led by David Marcus, a Genevan native, Libra last year angered U.S. lawmakers by opting for Switzerland. On Thursday, Finma said it is closely coordinating with Switzerland's central bank over Libra, as well as  with «more than 20 other supervisory authorities and central banks from around the world since the start of its dealings with the Libra project».