CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$23,557.00
  • ethereum
    ETH$1,615.08
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » 5 Reasons Why Facebook’s Libra May Never Launch

    5 Reasons Why Facebook’s Libra May Never Launch

    Author: Jordan Lyanchev

    Last Updated Nov 7, 2019 @ 15:13

    In June of this year, Facebook announced its plans to launch a cryptocurrency dubbed Libra. However, the company has since seen a backlash, with regulators and the media grilling the project for a variety of reasons. With this in mind, let’s explore at least five reasons why Libra may not launch – something that is considered entirely possible within the cryptocurrency community.

    Regulatory Pressure

    It didn’t take long for Facebook’s future cryptocurrency project to grab regulators’ attention. Unfortunately, much of that attention was rather negative.

    Bruno Le Maire, France’s Minister of Economy and Finance. Source: Flickr

    The French finance minister and a German member of the European Parliament were among the first to react, calling for a discussion on Libra. Moreover, both countries agreed to block the project, stating that “no private entity can claim monetary power, which is inherent to the sovereignty of nations.”

    Months later, the situation surrounding Libra has gotten worse, and it has brought attention to the cryptocurrency market as a whole. G20 members were urged to articulate their positions on the matter, as officials contended that Facebook’s project couldn’t respond to all regulatory challenges.

    Losing Key Supporters

    When it was first announced, the Libra Association had a total of 28 members. Powerhouses such as MasterCard, Visa, Spotify, and Uber were among the project’s initial backers. Unfortunately for Facebook, the negative stance of regulators across the globe cast doubt over the project’s future, and it subsequently lost important backers.

    ADVERTISEMENT

    PayPal was the first major name to back out, and Visa, MasterCard, and eBay followed shortly thereafter. The payment processing company Stripe stepped back as well, and the Latin American payment system Mercado Pago was next.

    Needless to say, losing key supporters puts a lot of pressure on the project, and even though Libra officials have said that they will continue working as planned, confidence in it is becoming notably weaker.

    Scams, Frauds, Legal Issues

    Being a social media giant, Facebook’s cryptocurrency brainchild brought notable attention to itself in other respects. Even though the official announcement specifically stated that Libra would launch no sooner than 2020, that didn’t stop scammers from taking advantage of consumers. Calibra.com is the project’s official website; however, Libra coins were purported to be sold to the public on another one.

    More legal issues came from an Israeli insurance company with the same name – Libra. They sent a notice to the social media giant, claiming that they owned all rights associated with the “Libra” trademark. Facebook responded by saying that they owned them, and referred to a different trademark – “Libra Association”, which is a non-profit organization based in Switzerland and owned by Facebook.

    It will be interesting to see how the case turns out, as it’s pretty obvious that the name of the cryptocurrency was intended to be Libra, not Libra Association.

    Facebook’s History

    One of the most important issues put forward by regulatory watchdogs regarding Libra’s mission was users’ safety and private data. And it’s safe to say that Facebook has a rich history of scandals, and it was even fined $5 billion following its privacy war with Washington.

    Mark Zuckerberg, CEO of Facebook. Source: Flickr

    Facebook’s CEO, Mark Zuckerberg, testified before Congress after the notorious Cambridge Analytica data leaks, and he even admitted that the “right” regulations might be needed. The European Union took a stand as well, creating the General Data Protection Regulation (GDPR).

    It’s worth noting that Zuckerberg will testify before the U.S. House of Representatives regarding Libra today.

    Structural Issues With the Cryptocurrency Itself

    In addition to all of the above, Libra has some inherent structural issues in general.

    Samson Mow, the CEO of Blockstream, pointed out that “Libra can’t be everything for everyone, and it can’t be both open and closed at the same time.”

    His comments followed this statement from the Head of Libra, David Marcus:

    “We open-sourced it, and as a result it doesn’t belong to us anymore. It now belongs to the community, and they will help build the code, and we will relinquish control over both the codebase and network through the process.”

    This is in direct contradiction with another of Marcus’s statements, that “wallets will enforce the sanctions that are led by our national security apparatus and treasury.”

    Marcus previously stated that people will be able to do whatever they want to with the money, as long as they have “legitimate use of the product.” Naturally, this means that the Libra Association could, in theory, decide that a certain use isn’t legitimate and freeze users’ funds or deplatform them entirely.

    In other words, besides the regulatory pressure that Facebook is currently facing, it appears that the general concept of Libra needs a lot of work and polishing.

    And if all of the above isn’t enough, Facebook itself recently warned its investors that Libra may never launch.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • PayPal
      The PayPal Effect: Billionaire Chamath Palihapitiya And Libra's Chief Believe Banks Will Support Bitcoin
    • facebook-3368457_640
      Facebook Censors Bitcoin-related Content Once Again
    • libra-min
      Libra Association Appoints Its Second Chief Legal Officer In Three Months
    Tags: Diem (Libra) Facebook (META) Regulations
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Jordan Lyanchev
    More posts by this author

    Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

  • bitcoin
    BTC$23,557.00
  • ethereum
    ETH$1,615.08
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!