This news came after a series of disappointments seen by the company and the skeptic reviews it got from regulators across the globe. Therefore, in a quarterly report Facebook released on Monday, the social media giant has included that although Facebook Libra plans to lunch in 2020, the whole idea may never come to fruition in the future.
According to the report, Facebook indicated that Libra drew much more scrutiny from governments, banks, regulators, and corporate bodies than it ever needed to survive and that might have marred its opportunities as the scrutiny is expected to continue and even swell in magnitude.
The assertion which was contained in the risk factor of the whole document read that the company recognized the opposition received from regulatory bodies and the shortcomings expressed by the respective lawmakers in this regard. As contained in the report,
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
Libra was introduced by Facebook earlier in June 2019 and was to be launched in 2020. No sooner than the introduction occurred did regulators of several countries kicked against the idea and pushed to go against it vehemently.
The scrutiny received on the floor of the U.S. Congress was the most significant. While many Congresspersons maintained that Facebook Libra threatened national security, others simply trashed it outright by pointing out flaws relating to Libra not conforming to the anatomy of a typical cryptocurrency.
As a matter of conclusion, Facebook Libra fell on rocky waters with regulations across the world. Although few countries had no problem with the designated cross-border payment system, a few other countries took a different approach to counter Libra.
China began, at the time, to look into building a national cryptocurrency in the stead of accepting Libra while the BoJ simply warned other central bank leaders of the impending dangers. G-7 countries central bank governors and finance ministers also agreed to defend against Libra while Libra was generally put in a state of mess.
During these hard times, David Marcus, head of Libra’s testimonies on the floor of the Congress’s house was barely enough to drive motivation for adoption.
Coming to expect less from the world, Facebook has issued this statement to either prepare the minds of Libra enthusiasts for possible project failure or instigate a delayed reality.