As heavy regulatory pressure piles up on Facebook’s Libra cryptocurrency, the future of the project is more uncertain than ever. Last Friday, PayPal sent a letter to ABC News in which the company officially announced to be withdrawing its support. Based on these critical events, Brad Garlinghouse claims that Libra will not launch before 2023.
In an interview with Fortune, the Ripple CEO Brad Garlinghouse stated that Facebook’s cryptocurrency project will not launch before 2023. The CEO behind one of the most significant projects in the sector who has already criticized JP Morgan’s coin backed his statement with the argument that regulatory pushback will further pressure Facebook. However, Facebook itself is still optimistic that the launch will happen as planned in 2020.
“I would bet that Libra… let’s say, by the end of 2022, I think Libra will not have launched”, said Brad Garlinghouse when asked about his view of Libra’s fate. Additionally, he noted that governments have raised various problems with Facebook’s plans for launching a digital asset.
During a visit of Switzerland of several representatives of the Libra Association, a number of government officials had made public remarks concerning the project. France and Germany had the strictest stance on Libra, whose Ministers of Finance publicly stated that they will not allow the currency on European soil, as it could destabilize the economic system.
Tech giants have also commented on Facebook’s initiative. Recently, the Apple CEO Tim Cook stated in an interview with a French news agency that the company will not follow in Facebook’s footsteps and that money should be controlled by governments.
Commenting further on the state of Libra, Brad Garlinghouse stated that the project would have fared better “if Facebook had not been the point of the arrow.” He explained his view saying that regulators most likely see Libra as a Facebook project instead of a standalone one.
Ripple’s CEO might be correct in saying that. The uncertainty around Libra is largely a result of Facebook’s malicious use of private user data. Facebook founder Mark Zuckerberg has already testified before the senate due to his company selling private data. Now there are rumors that he might have to testify again due to Libra’s potential impact.
On another note, the controversial Libra project has recently experienced another heavy blow when Paypal, one of the 28 founders of the Libra Association, decided to withdraw its membership. In a letter sent to ABC News, the company announced that it will renounce its participation in the Association and instead continue to focus on its mission to democratize access to financial services for underserved populations.