In its latest quarterly report, Facebook reminded its investors that it aims to roll out Libra in the coming year. However, the social giant believes that several factors could bar it from reaching this milestone. The firm noted that it had realized the implication of the pushback emanating from lawmakers and watchdogs since it announced Libra in June.
In its Q2 report filed with the US SEC, Facebook noted,
Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue,
Since launch, Libra has been a controversial issue among global regulators and politicians. Apart from this, the coin still faces the regulatory uncertainty in the broader crypto market. Per the Federal Reserve, further development of the coin would have severe consequences on the global economy. As a result, the US Congress requested that Facebook put the project on hiatus until it has more details.
Facebook Aims to Work on the Development of Libra Openly
Yesterday, a Facebook spokeswoman noted that the firm intends to work on Libra openly with all concerned parties.
We know the journey to launching Libra will be a long one and 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.
The firm’s CEO Mark Zuckerberg shared similar thoughts. According to him, a few years ago, the firm would have shown up and try to release a product on its own. However, this is not the case anymore. He noted that the company is now outlining ideas and values that it thinks the final service should have. It then leaves an indefinite open period to address regulator and expert concerns. Per Zuckerberg, this would help the firm figure the best way to move forward.
This news comes after Facebook abandoned plans for launching Libra in India. The company cited regulatory restrictions as the reason for this decision.
A spokesperson noted,
There are no plans to offer Calibra in India. As you may know, there are local restrictions within India that made a launch of Calibra not possible at this time.
Before this, a report unveiled that Libra would be attractive to developing countries with large populations. An example is India, which has more than 300 million Whatsapp users. Launching Libra in India would have seen the coin attain mass adoption faster than other crypto coins.
Do you think Facebook will be able to address all regulatory concerns before the end of this year? Let us know in the comments below.