There has been a lot of talk recently about a new cryptocurrency called Libra that will be created by Facebook. The social media giant has said that they would like to release Libra at some point in the year 2020. However, there have been many problems that the company did not foresee. The United States government has not been thrilled about the idea of the world’s biggest social network creating its own cryptocurrency. Regulators have asked people at Facebook many questions about it. There were even hearings in front of Congress that put Facebook and Libra in a very bad light.
It seems that Facebook is starting to realize that it is a very real possibility that the Libra project might never come to fruition. This is what they are telling all of their investors. Facebook recently filed some documents with the Securities and Exchange Commission. They said that they are expecting the scrutiny of Libra to continue from lawmakers and regulators from around the world. Therefore, it will be impossible to guarantee that Libra will ever be made available. The plan is still in place for Libra to come out next year. However, the fact that Facebook has never attempted anything like creating their own digital currency could stall the project or end it altogether.
One of the reasons why Facebook decided to start the Libra project in the first place is to give people a lower cost way to transfer money around the world. The company is also touting Libra as being a much safer and secure form of digital currency than the others that are currently available on the market. It remains to be seen if these statements are actually true. There have been concerns from world leaders that a Facebook cryptocurrency could cause the collapse of the economies of smaller countries. This could happen if most people in these countries stop using their local currency and only use Libra.
There are still many hurdles that Facebook will have to jump before Libra can become a reality. However, Facebook has the advantage of being a massive company with a lot of sway with politicians. They donate money to these politicians. Therefore, getting these people to make certain decisions that favor the Libra project will not be a hard thing to do. Facebook CEO Mark Zuckerberg still seems very confident that Libra will happen sooner rather than later.