Facebook plans to launch its digital currency called Libra as soon as in 2020. However, it warns investors that many factors can prevent the project from succeeding.
Threats to Libra
, the most popular social media platform, published a quarterly report which presents threats to the new digital currency project on July 24. It reports that since the release of plans for the Libra
cryptocurrency, the platform has received significant protests from public officials in the US and abroad.
Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue.
- said Facebook in its application to the Securities and Exchange Commission
, the head of the development of Calibra
digital wallet, testified before the United States Senate Committee On Banking
earlier this month. At the hearing, US secretary of the Treasury Steven Mnuchin
and Federal Reserve Chairman Jerome Powell
expressed their concerns about the Libra currency. The reservations were made by French finance minister Bruno Le Maire
and a member of the board of the European Central Bank - Benoit Coeure
Facebook also adds that the market acceptance of this currency is subject to considerable uncertainty, so it can not be guaranteed that Libra will be made available in a timely manner, or if it will become available at all. The platform emphasizes that it has no previous experience related to digital currencies
technology. Lack of experience in this field may adversely affect the effective development.
Facebook wants to cooperate
In a statement for CNBC
on Monday Facebook's spokeswoman announced that the platform would openly cooperate with all interested parties:
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.
- said the spokeswoman.
Facebook's CEO Mark Zuckerberg gave a similar opinion:
Now the approach on all of these fronts is to outline the ideas and the values that we think an eventual service should have, leave open a period of however long it takes to address regulators and different experts and constituents’ questions about this and then figure out what the best way to move forward is.