Will Facebook Not Launch Libra?

By Rishma Banerjee

Libra cryptocurrency has been in the news for quite some time now, with experts debating whether it is a good development or not. However, Facebook Inc. has recently issued a warning for their investors that they won’t be launching their crypto is they are unsuccessful in addressing the concerns raised by regulators and lawmakers around the world.

Libra, after its initial announcement, has received more or less a positive reception within the crypto sphere, and also contributed significantly in the bull run that the other cryptocurrencies are experiencing now. But, the proposed cryptocurrency also managed to attract the attention of regulators and policymakers worldwide. Earlier this month, Facebook’s blockchain chief David Marcus was grilled regarding the project by members of the US Congress at two different congressional hearings – once by the Senate Banking Committee and again by the House Financial Services Committee, respectively.

He has provided assurance to the lawmakers that Facebook “will not be offering” its proposed digital currency Libra “until we have fully addressed regulator’s concerns and received the proper approvals”. The same sentiment was also echoed last week by the company’s CEO Mark Zuckerberg.

The company also acknowledged the regulatory challenges around Libra in its latest quarterly report, CNBC informed on Monday.

“Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue,” CNBC quoted Facebook as saying in its filing with the Securities and Exchange Commission.

The social media giant also pointed out that it was uncertain whether its cryptocurrency would be accepted by the market.

“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. We do not have significant prior experience with digital currency or blockchain technology, which may adversely affect our ability to successfully develop and market these products and services.”

Facebook representatives have said on several occasions that the company is committed on cooperating with regulators to address the concerns around the project.