When Facebook unveiled its proposed cryptocurrency project, many crypto enthusiasts worried that it would take the place of Bitcoin and other digital currencies. Libra was subsequently hit by several regulatory hurdles that now threaten its launch in the future. Is Libra dead on arrival?
Bitcoin (BTC) Price Today – BTC / USD
| Name | Price | 24H % |
|---|---|---|
 | $0.00 | -0.15% |
Libra May not Be Launching Afterall
Facebook recently released its quarterly report and it revealed that the Libra cryptocurrency project may not launch. The planned project may be delayed or eventually abandoned due to regulatory hurdles. The stablecoin project was scheduled for launch in 2020 while the whitepaper was released a few weeks ago. Libra has been the topic of debates by regulators all over the world ever since it was unveiled. Privacy concerns and other regulatory issues still plague the stable coin and this has left it open to scrutiny from the government.
Libra Hoped to Disrupt the System
Facebook envisioned Libra to be a pioneer in the crypto industry. It was meant to bring a groundbreaking innovation when it comes to cross border payments. When the idea was hatched, some big names in the payments industry such as PayPal, Mastercard and Visa backed it.
Things seemed to go well for the stablecoin before lawmakers began to bog it down and seek clarification for every detail of the network. The main issues raised were the privacy of data, transaction security as well as a monetary framework.
Maxine Waters, Chair of the House Financial Services Committee, has requested that all project-related developments be halted. Libra Chief, David Marcus has also responded to several issues raised in different hearings in Congress. Nonetheless, the stablecoin continues to be at the receiving end of attacks over its regulatory groundwork.
Libra Has Not Been Accepted By The Market
Another reason why Libra project has been placed on indefinite hold is market acceptance. The project has not received market approval and Facebook has said it would be difficult to predict market sentiments since different countries face economic uncertainties.
So far, there is no guarantee that the project will be seen in a positive light. This is mainly because the firm has not been a part of the crypto community. Also, it has not made any significant investments in the blockchain or virtual currencies. In addition, a survey on the market sentiments of the coin shows that the adoption rate of the currency is poor.
Despite all the issues faced by Calibra team, the company is still keen on addressing all concerns about the coin. Apparently, the whitepaper was released a year earlier than the launch to accommodate all questions, requests and concerns by the U.S regulators.
For crypto fans who believed that Libra would disrupt the system and bring about a new era, this may come as disappointing news. It is not the end. Libra may still find its footing in other countries. For now, it is uncertain if Facebook would go ahead with it in other countries with less strict regulations on crypto.
Do you think Libra can survive its regulatory hurdles and launch as scheduled in 2020?
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.
