According to a report by the BBC, Facebook’s Libra cryptocurrency faces yet another challenge as the G7 group have warned it must not be launched until security and safety provisions have been proven. Rosie Burbidge, an expert on intellectual property and cryptocurrency from gunnercooke, commented on what the latest development mean for the cryptocurrency and Facebook itself :
“The success of Facebook’s Libra project depends on regulatory approval and consumer/retailer buy in. Losing so many partners creates a major barrier to developing trust and creating traction. When you couple this with the approaches of many regulators, particularly in France, the related problems may prevent Libra getting off the ground.
“Concerns include the risk of Libra being misused to fund illicit activities such as fraud, counterfeit goods and terrorism. These are not easily solvable problems and Facebook is still grappling with these issues on its main products – the social media sites themselves.
“Facebook has the financial resources and network to make Libra a success but it has problems with trust which will take time to resolve and may create an impossible barrier to growth.”