We first heard about Facebook Libra, the cryptocurrency social media giant has made plans for, back in June. Amidst all the concerns and reservations of authorities surrounding it now, the digital cryptocurrency may never be launched at all.
One of the many reasons throwing light on Libra included the use of cryptocurrencies for terrorism and other illegal activities.
Earlier Facebook hinted on the Libra launch only after exhaustive testing of the system. However, the global firm has now warned the investors that it might not launch Libra at all, presenting a more cautious approach.
Facebook wrote in the filing made with the Securities and Exchange Commission, “Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue.” The company adds, “In addition, market acceptance of such currency is subject to significant uncertainty. As such, there can be no assurance that Libra or our associated products and services will be made available in a timely manner, or at all.”
The launch was expected to take place in the first half of 2020. It might happen, but the recent incidents could alter things that might consequently wipe out Libra completely.
Facebook mentioned regulatory issues that might hold back the Libra project, in its quarterly reports submitted to the SEC. It also talked about how rolling out a new technology will highlight the impediments of vague protocols in many countries.
There is no clear information regarding the release of Libra or any other services of Facebook in the quarterly report. The tech giant can expect a lot more inspections and audits from the officials if they proceed in the native project. The dominating online social networking giant cited that this may negatively impact its business, reputation and financial aspects.
Facebook Libra: More Concerns Less Clarity
Considering the fact that worldwide Facebook has a humungous user base of over 2.4 billion monthly active users, it has attracted many central authorities, banks, financial institutions, governments, and other official bodies demanding exquisite details of the Libra project. These official bodies are sceptical about the promising use cases by the vast user base which could make the whole scenario turn into more challenges related to stability issues, money laundering, and other related threats.
CNBC on Monday reported that a spokeswoman from Facebook told them that from now on until the launch of the product, the tech giant will work openly with all the concerned parties.
“We know that the journey to launching Libra will be a long one and that we cannot do this alone,” the spokeswoman wrote. “Engaging with regulators, policymakers, and experts is critical to Libra’s success. This was the whole reason that Facebook along with other members of the Libra Association shared our plans early.”
Facebook was planning on developing its own currency in parallel to the rivals Bitcoin. Libra was set to be launched by the global dominating platform by the year 2020. However, it doesn’t look like if that will happen.
A few days ago only, there were some serious questions rose by authorities on the cryptocurrency. Lawmakers and global regulators cited privacy issues to put a full stop to the project Libra.
Libra project seems to have created an avalanche in the crypto sphere. Whether the cryptocurrency will see light or not, is still in question.
