The social media giant Facebook has warned investors that it’s highly anticipated, and much-contested cryptocurrency project, Libra, may never see the daylight in the crypto industry.
Facebook said in its filing with the Securities and Exchange Commission.
“Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue,”
In the latest quarterly report, the platform claims that a number of factors could act as a hurdle that might affect the launch of Libra.
Facebook stated in its quarterly report that :
“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.”
According to the quarterly reports, Facebook mentioned in the risk factors that it is aware of the significant pushback came from lawmakers and regulators since the project was announced in June.
In the risk factors section of the report, Facebook said it recognizes the significance of the pushback that’s come from lawmakers and regulators since the project was announced in June.
According to reports of CNBC, a Facebook spokeswoman claimed
“We know that the journey to launching Libra will be a long one and that we cannot do this alone, Engaging with regulators, policymakers, and experts is critical to Libra’s success. This was the whole reason that Facebook along with other members of the Libra Association shared our plans early.”
Overall, the social media giant concluded by saying
“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.”