Facebook’s digital currency Libra may never be released to the market. This is according to a report released by CNBC on July 29. According to it, the largest social media network in the world warned investors that the stablecoin they are currently developing may never launch.
Libra May Not Reach The Market
Libra, the digital currency announced by Facebook on June 18 this year may never be released to the market. According to the latest quarterly report released by Facebook, the virtual currency could face some challenges that would not allow it to be launched next year.
One of the main issues that Facebook admits that it has to face is related to regulations. There are many regulatory agencies around the world that show they are worried about the impact that the digital currency could have on the market and on the economy.
A Facebook spokesperson told CNBC on Monday:
“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.”
After the official announcement made by Facebook, Bitcoin surged above $13,700 for a short period of time. However, it was not possible for the virtual currency to keep its momentum and the digital currency fell to $9,350 in some crypto exchanges.
There are several recognized companies around the world that invested in this new project, some of them include Amazon, Mercado Libre, Uber and many others. Each of them had to invest $10 million in order to be accepted by Facebook.
Libra is expected to be a stablecoin backed by fiat currencies from different countries. These currencies include the U.S. dollar, the Japanese yen, the British pound and the Euro. The intention is to use it to perform payments between WhatsApp, Messenger and Calibra users. There are many experts that consider that the virtual currency that is expected to be released by Facebook has the potential to help new individuals have access to financial services without having to rely on bank accounts.
Regulators in Europe, Asia and North America have already given their opinion about this crypto project. Indeed, the U.S. President Donald Trump wrote a tweet in which he says that if Facebook wants to offer financial services to users it will have to comply with banking regulations as many other companies.
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