In its second-quarter report, Facebook brought some bad news to Libra's investors, stating that there are several factors affecting the supposed 2020 launch of the highly-contested cryptocurrency.
According to CNBC, Facebook explained that it acknowledges the queries and concerns brought about by data regulators and lawmakers. The U.S. government and the Fed have both strongly expressed its distaste for the Calibra project.
Furthermore, the company said such currencies, like the bitcoin, come with uncertainties in the market. The social platform then noted that "there can be no assurance that Libra or our associated products and services will be made available in a timely manner, or at all."
The news came amid increased scrutiny from not just the White House but also other governments around the world. While Facebook has tried multiple times to explain how Libra will be used, government heads appear to be unforgiving of the potential risks that come with the digital currency.
The most notable part of Facebook's note to Calibra investors is its recognition of the team's lack of "significant prior experience" with blockchain tech and digital money. The firm acknowledged that this inadequacy could have negative effects on the development of the Libra currency.
Calibra leader, David Marcus, was even called to testify before the U.S. Senate Banking Committee earlier this month in light of the cryptocurrency. Marcus tried to point out that Libra will be a low-cost payment option for people who find other payment methods too expensive.
However, lawmakers continued to question the potential risks that could come with Libra's supposed launch. Industry analysts believe Facebook's own bitcoin has a long way to go before it is approved worldwide, save at home.
A spokeswoman for Facebook said the Calibra team will continue to work with regulators and relevant experts as it seeks to catch up with the supposed 2020 launch, as agreed on with investors.
As Facebook continues to plead with the White House for its Libra currency to be launched, other organizations and experts in the cryptocurrency circle have spoken up.
Director of External Affairs at the Blockchain Association, Kristin Smith, noted that there's more to the industry than just Mark Zuckerberg's firm. "Facebook just doesn't have a good reputation on the Hill. We didn't want to inherit the legacy reputational problems they have," she pointed out, according to CNN.
It is worth noting that the bitcoin and blockchain sectors have largely been unregulated before the Calibra project took the attention of the entire world. Industry analysts indicated that with Facebook in the middle of the telescope, regulators may start setting their eyes on similar activities.
