Facebook Inc has warned its investors that its Libra cryptocurrency might not be launched if the company fails to address the serious concerns raised by regulators and lawmakers around the world.
The last month announcement of the Libra project enjoyed a positive reception within the cryptocurrency community and helped many digital currencies, including Bitcoin (BTC), reach fresh 2019 highs. However, the proposed cryptocurrency also attracted the attention of regulators and policy makers worldwide. Earlier this month, Facebook’s blockchain chief David Marcus was grilled regarding the project by members of the US Congress at two separate congressional hearings – before the Senate Banking Committee and the House Financial Services Committee, respectively. He assured the lawmakers that Facebook “will not offer” its proposed digital currency Libra “until we have fully addressed regulator’s concerns and received the proper approvals”, a sentiment that was echoed last week by the company’s chief executive officer Mark Zuckerberg.
The company also acknowledged the regulatory challenges around Libra in its latest quarterly report, CNBC informed on Monday.
“Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue,” CNBC quoted Facebook as saying in its filing with the Securities and Exchange Commission.
The social media giant also pointed out that it was uncertain whether its cryptocurrency would be accepted by the market.
“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.”
Facebook representatives have said on several occasions that the company is committed on cooperating with regulators to address the concerns around the project.
Featured image: Ink Drop / Shutterstock.com
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