WASHINGTON (dpa-AFX) - Facebook acknowledged that it is facing an uphill task in implementing its cryptocurrency initiative.
Under the project Libra, the social media giant had announced plans to launch a cryptocurrency-based payments system in a dozen countries by the first quarter of 2020 and start trials by the end of this year.
But in a filing with the U.S. Securities and Exchange Commission (SEC), Facebook said, 'There can be no assurance that Libra or our associated products and services will be made available in a timely manner, or at all.'
The company pointed out that it is facing multiple hurdles regarding regulating a new technology with no clear cut rules in the U.S. and other countries.
'Our participation in the Libra Association will subject us to significant regulatory scrutiny and other risks that could adversely affect our business, reputation, or financial results,' Facebook said in the disclosure.
The company said Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions, and that it expects that scrutiny to continue.
'These laws and regulations, as well as any associated inquiries or investigations, may delay or impede the launch of the Libra currency as well as the development of our products and services, increase our operating costs, require significant management time and attention, or otherwise harm our business.'
Facebook admitted that its lack of significant previous experience with digital currency or blockchain technology may adversely affect its ability to 'successfully develop and market these products and services.'
The latest development comes at a time efforts to launch the new 'GlobalCoin' were in full swing.
The social media giant had formed a subsidiary called Calibra to run the Libra network, powered by blockchain technology.
As a first step, Calibra planned to introduce a digital wallet for Libra, that can be used to buy goods and services online and send money.
Facebook had partnered with 28 companies, including financial services giant Mastercard and PayPal Holdings, tech giants Uber Technologies and Spotify Technology, and blockchain companies like Coinbase for the digital wallet service. It would be connected to WhatsApp and Messenger and as a stand-alone app.
Facebook said Calibra would have strong protections to keep the users' money and information safe, and also will take steps to protect their privacy.
The company had offered a refund if someone fraudulently gains access to user's account and they lose some Libra.
However, a spate of oppositions followed in July.
A group of U.S. lawmakers called on Facebook to freeze the Libra project saying it is intended to rival U.S. monetary policy and the dollar.
A group of North American privacy, economic policy and consumer watchdogs called on US Congress and regulators to impose a moratorium on Libra.
President Donald Trump questioned the credibility of the new cryptocurrency project.
Meanwhile, the Senate Committee on Banking, Housing and Urban Affairs has scheduled a hearing for Tuesday on regulatory frameworks for cryptocurrencies and blockchain.
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