The largest social network Facebook has announced that the launch of the Libra digital currency project may be canceled due to the significant pressure of regulators. It is reported by The Block, with reference to the company’s statements made for the US Securities and Exchange Commission (SEC).
There is no guarantee that Libra or related products and services will be available in a timely manner or even ever, says the report for the SEC.
Facebook is sure that one of the main obstacles to launch a project is legal uncertainty. The situation is worsened by the alertness of regulators in various countries, which may cause a delay or even prevent Libra from launching.
Besides, representatives of the company noted that they do not have significant experience with cryptocurrencies and blockchain technology, which may adversely affect the ability to create in the market relevant products.
We will also incur increased costs in connection with our participation in the Libra Association and the development and marketing of associated products and services, and our investments may not be successful. Any of these events could adversely affect our business, reputation, or financial results, the social media giant concluded.
Recently, the head of Facebook, Mark Zuckerberg, said that his company did not abandon plans to launch a digital currency, Libra, and would spend “as much time as it takes” to win over regulators.