Ever since the June Libra announcement from Facebook, new evidence that came directly from Facebook’s recent investors reports clouds a bit of negativity over the potential new global coin. The reasons may hide behind a lack of experience in the blockchain field and “scrutiny from governments.”
Concerns and a Possible Delay for Libra
Facebook’s announcement in June brought enormous attention, but not all of it was positive. Since then, several well-known public figures appeared to raise concerns about Libra and the potential harm it may cause, and even a knock-off website was launched offering to sell Libra coins (which are far from being released).
Some of those names include – U.S. Treasury Secretary Steven Mnuchin, Federal Reserve Chairman Jerome Powell, European Central Bank Executive Board Member Benoit Coeure and French Finance Minister Bruno Le Maire.
Adding the “lack of experience” to the Libra and Calibra equation, Facebook stated on their quarterly report that the projects could be delayed or even not launched at all.
“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.”
The CEO of Facebook, Mark Zuckerberg, stated that the company will take as much time as needed to improve on all fronts and to “address regulators and different experts and constituents’ questions about this and then figure out what the best way to move forward is”.
Facebook’s own digital currency has a launch year – 2020. David Marcus – spearheading the development of the project, who had a congressional hearing earlier this month about the currency’s mission, explained that Libra and the digital wallet Calibra would be used as a more effective and low-cost way of transferring money from one source to another.
Some questions have been raised about the potential of Libra, as it was even referred to as a PayPal upgrade.
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