Facebook Reveals Libra “May Never Launch” to Company Investors
The cryptocurrency spotlight has been set on Facebook for the last few weeks. This comes as Facebook is reportedly ramping up to release its own crypto, Libra. However, a fresh CNBC report now reveals that Facebook is warning investors that its Libra stablecoin may never launch.
Could Libra never launch?
This shocking news comes in a CNBC article examining Facebook’s latest quarterly report. This CNBC report start off with stating that Libra “may never see the light of day”. Although the CNBC report notes that Facebook is aiming to launch its Libra crypto next year, several factors could still affect this.
For example, regulatory pushback is supposedly one of the major hurdles Libra and Facebook need to clear before release. If not, the forward-looking statements in Facebook’s quarterly report also note that regulatory uncertainty may see Facebook’s upcoming Libra project cancelled.
The risk factors section of Facebook’s quarterly report saw the company recognize that regulatory pushback against Libra has been substantial. Several industry commentators have speculated that Facebook may have faced more intense opposition than the social media giant expected.
“Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue,” Facebook wrote in a Securities and Exchange Commission filing.
Facebook recognizes that engaging with regulators is key
Facebook may say that it expects this “scrutiny” to continue. However, CNBC reports that a Facebook spokesperson recently said that positive relations with regulators are essential for Libra.
“We know that the journey to launching Libra will be a long one and that we cannot do this alone. 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.”
In addition to this, Facebook’s CEO Mark Zuckerberg made some similar comments on a Wednesday call with analysts. According to Zuckerberg, Facebook has shown remarkable restraint in its unveiling of Libra.
Specifically, Zuckerberg said that the Facebook of a few years back would not have shown its plans for Libra in the way Facebook has. Instead, Facebook “would have probably just showed up and tried to release a product on [their] own” without working with regulators. Zuckerberg continued:
“Now the approach on all of these fronts is to outline the ideas and the values that we think an eventual service should have, leave open a period of however long it takes to address regulators and different experts and constituents’ questions about this and then figure out what the best way to move forward is.”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.