The largest social network Facebook has announced that the launch of the Libra digital currency project may be canceled due to significant pressure from regulators. It is reported by The Block, with reference to the company's statements prepared for the US Securities and Exchange Commission (SEC).
There can be no assurance that Libra or our associated products and services will be made available in a timely manner, or at all.
Facebook Q2 Report Filing to SEC
Facebook is sure that one of the main obstacles to launching a project is legal uncertainty. The situation is aggravated by the alertness of regulators in various countries, which may cause a delay or even prevent Libra from launching.
In addition, representatives of the company noted that they do not have significant experience with cryptocurrencies and blockchain technology, which may adversely affect the ability to create in the market relevant products.
We will also incur increased costs in connection with our participation in the Libra Association and the development and marketing of associated products and services, and our investments may not be successful. Any of these events could adversely affect our business, reputation, or financial results.
Facebook CEO Mark Zuckerberg said earlier that his company is not abandoning plans to launch Libra’s digital currency and will spend “as much time as it takes” to win over regulators.