Since its inception, Facebook’s foray into crypto has been under fire from all sides. The reaction to Libra was unsurprising really given the social media giant’s poor track record when it comes to data protection and security. Now Facebook are finally admitting that the cryptocurrency project may not even get off the ground.
Facebook Acknowledges Crypto Concern
In its latest quarterly report, Facebook has reminded investors that Libra may not go ahead despite its planned launch in 2020. According to CNBC the company said it recognized the significance of the concern that has come from lawmakers and regulators. In its filing with the SEC Facebook stated;
Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue. 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.
Libra project lead David Marcus, who was grilled by US senators earlier this month, maintains that the project will be a ‘more efficient, low-cost and secure alternative’ payment method. However, Facebook has also partially admitted that it would be harvesting data Libra from transactions to better target its advertising.
The concept has come under immense scrutiny from nations across the globe with even Donald Trump tweeting about it. Other US politicians have practically labelled Libra as a ‘shitcoin’ in their continued lambasting of the project. China and Russia have hinted at their own central bank crypto currency to negate the threat of a US dollar based one controlled by a US tech consortium.
The report added that a Facebook Spokeswoman told the outlet that engaging with regulators, policymakers, and experts is critical to the crypto project’s success. CEO Mark Zuckerberg also partially admitted that the internet behemoth had grown too big, adding that the firm ‘would have probably just showed up and tried to release a product on our own,’
He added that they would be leaving open a period of however long it takes to address regulators, different experts, and constituents’ questions. In reality, Facebook does not have a choice. The firm has been in the headlines for all the wrong reasons over the past year or two, and trust is pretty thin on the ground.
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