Facebook Libra coin has faced harsh criticisms and regulatory hurdles since its whitepaper was revealed a few weeks ago. The controversy surrounding the coin is not going down anytime soon as fresh regulatory uncertainties have threatened the token’s existence. Some top supporters of the token are reportedly making plans to withdraw from the project. Financial Times reports that three main supporters of the crypto have held private meetings to discuss a possible retreat from the Libra project. The reason is the strong resistance by regulators.
EU Antitrust officials and Politicians frustrate Libra’s Plans
Politicians in the U.S and other top states have criticized the Facebook Libra coin project. Recently, the EU antitrust officials raised concerns about the project. This has pushed some supporters of the project to back off. Facebook has also issued a warning telling its investors that the coin may never exist at all.
The Libra Association was inaugurated in June when the project was announced. The supporters of the project expected a better reception to the news of the coin. But this was not the case. The Facebook Libra coin has met with several regulatory hurdles and backlash on privacy concerns.
After the project was announced, members of the Libra Association agreed to invest $10 million in the project. Some include Spotify, Uber, MasterCard, and Visa. Uber, Spotify and Vodafone have expressed concern over the constant regulatory scuffles. The companies say that the negative attention Libra is getting may rub off on them.
Lack Of Public Support Is A Problem for Libra
One of the supporters said discussions about regulation before the launch would have solved half of the problems now. The supporters didn’t expect a lack of public support for the coin.
The absence of public support embitters Facebook. The company’s representative stated that Facebook is worn out from having to handle the situation all by itself.
What Does The Future Hold For Libra?
At the moment, uncertainty hovers around the Facebook Libra coin project. The controversy continues to linger as data protection officials released strong statements earlier this month. Officials from UK, EU, US, Australia and Canada issued warnings to citizens. The regulators are concerned about the potential risk of tax evasion as well as money laundering. Privacy issues were also raised because of Facebook’s privacy scandals in the past.
The officials flagged the coin because of the lack of specific privacy information which entails how Libra would operate as well as the protection plan for users. The coin has a long way to go before the official launch of the project in 2020. Will Libra succeed?