The social media behemoth Facebook notifies the community that the launch of the much-hyped Libra currency, which has alerted lawmakers, bankers and regulators globally, may never take place due to a significant regulatory pressure that has fallen on the project like an avalanche.
Facebook’s admits absence of experience in DLT and crypto
In its report for Q2 this year, Facebook admits that it cannot guarantee the actual release of Libra coin or any products or services related to it in the near future. The report was submitted to the SEC’s approval.
Facebook explains it by referring to ‘uncertain and evolving’ legal barriers around cryptocurrencies on a global scale. The report uses the words ‘delay’, ‘impede’ when speaking of Libra’s future and paints it black.
Besides, the social media giant team admits that it lacks the necessary previous experience in working in the nascent crypto sphere and DLT – this decreases the chances of it making a product that would reach any immediate success.
Facebook also writes that its investments in the support of the Libra Association may be unsuccessful. Besides, these costs keep rising and are not producing any returns at the moment.
China’s showing interest to Libra
Previously, CryptoComes reported that China is showing a certain interest in the announced Facebook cryptocurrency. The number of web searches on Weibo (a Chinese popular search engine) has been rising as of late.
At present, Libra searches are on place #3 after other popular topics in China.
As for regulators, raising barriers to the asset in question, recently, the British regulator FCA has promised to place LBR under a serious scrutiny.
The British Financial Conduct Authority along with the Treasury claim that the crypto project requires a much closer look and more regulations since it is not transparent enough.