Representatives of Facebook social network reported that the cryptocurrency project they are developing may be cancelled. The reason for this is the "significant" regulatory pressure that the company has faced since the announcement of its initiative.
"There can be no guarantee that Libra or its related products and services will be available in a timely manner or at all," writes The Block with reference to the second quarter accounts prepared by Facebook for the US Securities and Exchange Commission (SEC).
"Undefined and still evolving" legislation in the cryptocurrency space, supplemented by investigations into regulators in various jurisdictions, may force Facebook to "delay or stop" the launch of Libra, the publication says.
The company also notes that it does not have "significant" experience in working with cryptocurrencies and blockchain, which, in turn, may "negatively" affect its ability to develop and market such products.
"In addition, we will incur increased costs in connection with our membership in the Libra Association and the development and promotion of related products and services. Our investments may not be effective. Any of these events could have a negative impact on our business, reputation or financial performance," concludes the company.
Last week the head of Facebook Mark Zuckerberg said that they were ready for a large number of questions from regulators when they announced their cryptocurrency project.