FILE PHOTO: Sergio Ermotti, CEO of UBS gestures during a panel discussion at the Swiss-American Chamber of Commerce in Zurich, Switzerland January 18, 2019. REUTERS/Arnd WIegmann

ZURICH (Reuters) - Switzerland should welcome innovation in cryptocurrencies but needs to be on guard against potential abuses by criminals, UBS Group Chief Executive Sergio Ermotti told a panel discussion on Tuesday.

“On balance (a) positive development, but watch out,” he said when asked how he felt about the new Swiss-based Libra cryptocurrency project led by Facebook.

Ermotti was speaking at a banking conference arranged by the Swiss Finance Institute.