The month of July has been one of turmoil and chaos in the crypto sphere, and one of the big reasons behind such a state of affairs was the announcement of the Libra coin, the cryptocurrency that is to be introduced by Facebook (NASDAQ:FB) next year. As soon as it was announced, it sent alarm bell ringing among regulators all across the world. The head of the United States Federal Reserve, Jerome Powell, expressed his skepticism, while the President of the United States, Donald Trump, did the same in a series of tweets.
Confusion in the Crypto Market
Eventually, such comments led to complete chaos in the crypto market as more and more traders believed that such comments could eventually lead to skepticism regarding the entire crypto market. As a matter of fact, Bitcoin’s excellent run during the first half of the year stuttered in July as the token continued to lurch from one extreme to the other on the back of any news relating to Libra.
However, todayFacebook announced that although it has every intention to launch Libra officially in 2020, there are plenty of factors that could scupper its plans. In fact, the social media giant seemed to concede in its quarterly report that the cryptocurrency might never actually be launched.
The company’s statement seemed to reflect its wariness at the regulatory scrutiny that it is surely going to face when it launches Libra. In its filing made to the SEC, the company stated, “Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue.” In such a situation, the company believes that it would not be able to roll out its product in its entirety in a timely manner, and it would eventually result in a poor product.
It remains to be seen how the crypto market reacts to the latest installment of dramatic news from Facebook’s Libra currency.
Featured image: DepositPhotos © TarasMalyarevich