Facebook warns investors: Libra cryptocurrencies may never be available

In its latest quarterly report, social media giant Facebook said that there is no guarantee that its cryptocurrency project, Libra, will be available in time, and may even never be available.

According to CNBC, Libra was closely watched by regulators and legislators from the US and around the world after the white paper was released in June this year. Although it is expected to launch Libra cryptocurrency in 2020, Facebook cannot guarantee that it will be released on time.

Facebook reminded investors in its latest quarterly report that there are many factors that may prevent Libra from launching. In a filing with the US Securities and Exchange Commission, Facebook mentioned that “Libra has been subject to rigorous scrutiny by governments and regulators in multiple jurisdictions and it is expected that such review will continue.” With regard to other uncertainties, Added in the document,

“In addition, there are significant uncertainties in the acceptance of such currencies. Therefore, there is no guarantee that Libra or our related products and services will be available in a timely manner, or even not at all. We have no digital currency or blockchain technology. Too much experience may have a negative impact on our successful development and marketing of these products and services."

David Marcus, head of the Calibra Digital Wallet project responsible for developing Libra and Facebook, said that for those who can't afford the high transfer fees, this currency will be a "more efficient, lower cost and safer alternative to traditional payment methods." .

Two weeks ago, Marcus participated in the Lib hearing of the US Senate Banking Committee and the House Financial Services Committee, and was questioned and criticized by lawmakers from all sides.

US Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell have expressed concerns about Libra, and French Finance Minister Bruno Le Maire and ECB Executive Committee member Benoit Coeure have also raised similar views.

A Facebook spokesperson said in a statement to CNBC on Monday that the company will work openly with all parties concerned from now until the product launch. Its spokesperson said that

“We know that the process of launching Libra will be extremely long. We can't do it alone. Collaboration with regulators, policy makers and experts is critical to Libra's success. This is how Facebook and other members of the Libra Association share us in advance. The whole reason for the plan."

Last week, Facebook CEO Mark Zuckerberg responded to analysts' questions about Libra's timeline, saying that Facebook's attitude toward Libra is "trying to engage in a very open dialogue." Unlike the company’s introduction of new products a few years ago, Facebook is currently trying to explain in detail the “ideas and values” that the product should have.

Zuckerberg said, “We have been in the process for a while, no matter how long it takes to resolve the concerns of regulators and other experts and voters, and then find the best way forward.” He said that he will work with Libra’s other 27 members cooperate. Because after proposing this idea through the white paper, they have already predicted that this is a strictly regulated area and there will be many problems. He said, "We will have to solve these problems."

Image source: pixabay

By Xiu MU

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