Facebook is doubtful about the launch of its controversial cryptocurrency Libra.
The social media giant said in its SEC filing that they might not go ahead with their plans due to “significant regulatory scrutiny.” It also noted that Libra could adversely affect its business, reputation, or financial results.
“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 promptly, or at all,”read the filing.
Facebook said it does not have prior experience with cryptocurrency or blockchain technology, which could affect their ability to successfully develop and market Libra. The firm noted that it was impractical for them and other partners to bear costs for supporting a venture whose future is uncertain from the regulatory point of view. It added:
“We have significant international operations and plan to continue expanding our operations abroad where we have the more limited operating experience, and this may subject us to increased business and economic risks that could affect our financial results.”
The statement followed the congressional hearing of Facebook’s Head of Libra David Marcus this July. Lawmakers grilled the executive with a string of questions about Libra’s intention to replace sovereign currencies. They also cast doubts on whether Libra, like its parent company Facebook, would also become a hotbed of data privacy violations.
Marcus responded that Facebook has no intentions to go ahead with Libra without securing nods from all the lawmakers and regulators.