By Governments and regulators in multiple jurisdictions have scrutinized Facebook’s digital currency Libra since its inception. As a result, Facebook, in its filing with the Securities and Exchange Commission said that it’s Libra cryptocurrency, is most likely not going to see the light of day.
“Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions, and we expect that scrutiny to continue,” Facebook said in its filing with the Securities and Exchange Commission.
Over the past few weeks, Libra has been on several headlines. Facebook may, however, fail to launch one of the most controversial cryptocurrencies in 2020 as was the original plan. This announcement has attracted criticism from the government and multiple regulators both in the United States, Europe and around the world.
Steven Mnuchic, U.S Treasury Secretary, voiced his serious concerns regarding cryptocurrencies including Libra; Facebook’s digital cryptocurrency.
“This is indeed a national security issue,” Mnuchin told reporters at a press conference yesterday. “Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illicit activity like cybercrime, tax evasion, extortion, ransomware, illicit drugs, and human trafficking,” adding that Facebook’s Libra “could be misused by money launderers and terrorist financiers.”
The Federal Reserve expressed concerns about the consequences it would bring, while President Trump and Congress members have asked for a moratorium on development of the cryptocurrency until more is known.
Facebook warned that;
“Libra is based on relatively new and unproven technology, and the laws and regulations surrounding digital currency are uncertain and evolving. Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions, and we expect that scrutiny to continue.”
The social giant further said that;
“As a primary sponsor of the initiative, we are participating in responses to inquiries from governments and regulators, and adverse government or regulatory actions or negative publicity resulting from such participation may adversely affect our reputation and harm our business. As this initiative evolves, we may be subject to a variety of laws and regulations in the United
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