Cryptocurrency is always in the headlines these days. One of the biggest stories involves social media giant Facebook’s attempt to launch their own cryptocurrency called Libra. This has not exactly gone as well as planned. The Libra project has come under the scrutiny of politicians around the world. There are many prominent lawmakers who believe that Libra has the power to destabilize the global economic system. Therefore, countries like France and Germany have already publicly stated that Libra will not be welcome there if it ever gets off the ground. It would appear that Libra is in very serious jeopardy of not happening at all.
There has been enormous pressure from the United States government on the people who are in charge of the Libra project. Congress has already questioned the Facebook employee who is overseeing Libra. They have also summoned Facebook CEO Mark Zuckerberg to testify on the subject of Libra some time in the next several months. Bad news for Facebook came this week when it was announced that several of the most prominent financial backers of Libra have decided to jump ship. PayPal, eBay, MasterCard and Visa all agreed to help launch Libra when Facebook first announced the project. However, all of those companies have officially backed out of the project because government regulators have signaled that there are big problems ahead for Libra.
The loss of all these large payment companies is a very big problem for Facebook. They had counted on them to provide a very easy way for Facebook users to buy the Libra cryptocurrency once it was available. Now the social media giant will need to rely on smaller payment companies to carry the load. It remains to be seen if Libra will be able to survive this latest setback. The good news is that all of the four companies that left have said that they might return to Libra if the situation changes in the future.
Zuckerberg was quoted as saying that Libra might not launch in 2020. This was the original plan. However, he said that it might take more time to get everything right before Libra is ready to unleash on the world. Apparently, there are many more issues that need to be worked out that Facebook is not making public. It remains to be seen if Libra will see the light of day. Only time will tell. We will have to wait and see.