Facebook shared with its investors in the latest quarterly report that while it expects to launch its Libra digital currency in 2020, there are a number of factors that could stop that from happening.
In the risk factors section, Facebook openly admits that regulatory pressure and the lack of support from lawmakers can lead to a premature shutdown of the Libra project.
“There can be no assurance that Libra or our associated products and services will be made available in a timely manner, or at all,” said Facebook in its Q2 report filing with the SEC.
Besides the pushback from officials, uncertain regulations surrounding cryptocurrencies and investigations from authorities around the world may delay or impede the launch of Libra, according to the report.
Because of the Libra project — which aims to bring crypto adoption to the billions of Facebook users — the company has faced criticism from public officials in the U.S. and abroad.
Shortly after the Libra announcement, lead developer David Marcus testified before the U.S. Senate Banking Committee and the House Financial Services Committee over two sessions, which concluded on a less than positive note for Facebook.
Officials from various government institutions have been highly critical of Facebook regarding the Libra project amid fears it could pose a threat to central bank money and provide a global avenue for money laundering and fraud.
Facebook also touched on the company’s lack of extensive experience with cryptocurrencies, which would impede its development and successful deployment of such products.
So Facebook recognizes this experiment might end before it starts and have a negative effect on its own business and reputation.
“We will also incur increased costs in connection with our participation in the Libra Association and the development and marketing of associated products and services, and our investments may not be successful. Any of these events could adversely affect our business, reputation, or financial results,” the social media giant concluded.