But Syedur Rahman of business crime solicitors Rahman Ravelli is not surprised that the social media giant remains determined to introduce it.
Most of the payment firms that initially agreed to join Facebook's cryptocurrency Libra have now said they will not be involved.
Visa and Mastercard have announced they will no longer participate. The Latin American payment system Mercado Pago and a number of other large companies, including PayPal, have also stated that they will be ending their involvement.
Facebook announced its plans for Libra in June 2019, stating it intended to roll it out publicly in 2020. Facebook said the digital asset would be controlled by the Libra Association, a non-profit organisation made up of various international companies. The Libra Association originally involved about 30 companies. They had to contribute a minimum of $10M to be listed as a founding member.
Facebook and the Libra Association executives have said that Libra's success will not be hampered by the high-profile withdrawals.
But the payment firms' severing of ties with Libra comes at a time when Facebook is facing increasing scrutiny over its planned new currency. Privacy issues relating to Facebook controlling a currency have been raised by political figures in the US, as well as concerns about its possible use in money laundering. The Bank of England has emphasised that Facebook will have to meet its highest standards for Libra to be given permission to be used in Britain.
While Facebook works hard to satisfy the authorities of Libra's credibility, it should be noted that crypto currency will always attract the attention of law enforcement agencies. This is due mainly to the appeal it has to those who are seeking to conceal their wealth, for whatever reason. Facebook will have to convince Congress that Libra will be capable of tackling this potential problem.
At present, it seems as if Facebook remains determined to launch Libra even though it has lost some participants. This is understandable. Cryptocurrency is sometimes described as one of the biggest innovations we have seen since the invention of the internet – Facebook is well aware of the potential benefits that await if Libra is given official approval.
Read the guide: Cryptocurrency – Reducing The Risks.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.