Facebook backing off of Libra plans
The social media giant’s baby might have to be canceled
Facebook may have bitten off more than it could chew this time. While its Libra stablecoin project may have, in some way, had good intentions, it immediately met with skepticism and doubt across the globe. From countries stating that the digital currency wouldn’t be allowed to be used inside their borders to other countries putting Facebook under the microscope, the backlash must have been greater than Facebook had ever anticipated. That’s the only explanation for how it could have come so far, only to fall so quickly. Facebook is ready to throw in the towel with only an apology to Libra investors.
Libra made its presence known in May, but it didn’t take long before financial regulators and government officials – especially in the US – to force the project to a grinding halt. However, in a call with investors this week, Facebook said that there are many risks regarding the coin and that the company cannot guarantee that Libra will continue to move forward.
In a filing with the Securities and Exchange Commission, the social media giant explained, “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.”
What this exactly means for Libra’s future isn’t totally clear. Facebook had previously said that the official introduction could be postponed until next year, but there has been no support for the coin on a large scale anywhere in the world. Without support by financial regulators, there is virtually no chance that it will be allowed to operate.