Facebook Warns of “No Assurance” Libra will be made Available on Time, if “At all”
- Facebook says it can’t guarantee if Libra “will be made available in a timely manner, or at all”
- The expected date for Libra launch is 2020 while the social media giant continues to see pushback from the US and international lawmakers
- Facebook has warned its investors in its latest quarterly report that while it expects to launch its cryptocurrency Libra in 2020, it is possible it might not happen at all.
In the risk factors section of the Q2 report, the social media said that it recognizes the significance of the pushback from regulators and lawmakers since the project was announced in June.
“Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue,”
Facebook said in its filing with the Securities and Exchange Commission (SEC).
“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. 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.”
Backlash for the Regulators and Policymakers
Libra is reportedly a “more efficient, low-cost and secure alternative” payment tool for the unbanked people and those that can't afford to transfer money using the traditional method, as explained by David Marcus, who is spearheading the development of Libra.
Since disclosing its plan last month, the company has faced criticism from public officials not only in the US but from all over the globe.
Earlier this month, Marcus was grilled before the US Senate Banking Committee and the House Financial Services Committee.
While many lawmakers called or a halt to the plan, others like US Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell have voiced their concerns along with French Finance Minister Bruno Le Maire and Benoit Coeure, European Central Bank Executive Board Member.
Facebook: Engaging with Regulators and Experts is “Critical” to Libra’s Success
“We know that the journey to launching Libra will be a long one and that we cannot do this alone,”
a Facebook spokeswoman wrote in a statement to CNBC.
The social media giant says it will work openly with all the concerned parties.
“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,”
the spokeswoman added.
Similar comments have been made by Facebook CEO Mark Zuckerburg who said a few years ago the company would have “just showed up and tried to release a product on our own” but now it involves outline the idea and value, address regulators and experts and figuring out the best way to move forward.