Libra is planned to launch in mid-2020, but it may never see the light of day. Facebook said that the cryptocurrency project might either be delayed or not happen at all.
Facebook received a huge backlash from financial regulators and legislators. Libra project is facing intense and increasing scrutiny and pressure not only from regulatory bodies in the United States, but also from Europe, and other countries.
- The chairwoman of the U.S. House Financial Services Committee has said that they will continue scrutinizing and reviewing Facebook’s cryptocurrency, Libra along with the wallet software. And called for Libra to be halted until regulatory issues have been addressed.1
- Data protection officials from Europe, the United Kingdom, Canada, and Australia released a letter this month detailing privacy concerns they have over the proposed currency.
- The European Union antitrust officials are probing the project and have opened an official investigation into it. They are investigating Libra over potential antitrust issues, and whether the new currency may unfairly shut out other rivals.
- Even in India, the government has proposed banning Libra. India was going to be a good market for Libra because of the number of people there.
- Trump also expressed his opinion concerning Libra on Twitter and thinks that Crypto Assets can facilitate illegal activities. And said that if Facebook and other companies want to become a bank. They must seek a new Banking Charter and become subject to all Banking Regulations.
According to the Financial Times, many backers of Facebook’s Libra cryptocurrency project are considering backing out due to growing pressure from regulators.
At least three backers companies that weren’t named were concerned is linked to the project and are considering withdrawal of the Libra project, and also discontinuing their support. Some partners have reportedly expressed concern that publicly supporting the digital currency could attract regulatory scrutiny of their businesses.
The silence and lack of support from the founding partners are creating tensions between them and Facebook.
All these obstacles can stop Facebook from continuing their project. This may have allowed them to take a huge control over not just the internet but also the financial world.
Source: 1: https://www.theverge.com/2019/6/18/18684268/facebook-libra-cryptocurrency-stop-congress-house-democrat-maxine-waters-regulation