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.”