In June, Facebook Inc. (NASDAQ:FB) announced its crypto project called Libra. At the time, Ripple CEO Brad Garlinghouse was excited and thrilled about the uptick in interest that Libra had created for Ripple. While speaking at the Fortune Brainstorm Finance conference, he indicated that he had sent celebratory champagne to the creator of Libra.
Garlinghouse says regulatory scrutiny an impediment to the launch of Libra
With the Facebook crypto faces regulatory severe hurdles and opposition from regulators, Garlinghouse now believes that Facebook can only launch the project after three years. Galinghouse has indicated that he can bet that Libra will not be operational even after the end of 2022.
According to Garlinghouse, regulatory issues are the main impediment for Libra following growing regulatory scrutiny on Facebook following a privacy scandal last year. On whether he was still bullish regarding Libra, Garlinghouse said that he wasn’t owing to the growing regulatory challenges they are currently facing.
Backers of Libra reconsidering support
The future of Libra has been in doubts, which even affirm Garlinghouse’s sentiments that delays in launching the crypto are imminent. PayPal Holding (NASDAQ: PYPL), which is one of the founders of Libra Association and backers of the cryptocurrency are backing out. On Monday, PayPal announced that it was not into the project anymore but will still be supportive of Libra. Other members of the Libra Association MasterCard (NYSE: MA) and Visa (NYSE: V) have equally indicated that they might reconsider their involvement in the Libra Project.
Facebook has been grappling with controversy regarding data privacy and the use of consumer data even before they launched the stable coin. The damaged reputation of the company regarding data privacy has greatly affected the prospects of launching a cryptocurrency of their own. Garlinghouse thinks that had it not been the scandals Facebook is facing reception of Libra could have been different.
The company has faced opposition from regulators across the world. Facebook has indicated that it will not launch the cryptocurrency without approval from regulators. However, Garlinghouse thinks that is a long shot, and he doesn’t see the company getting to that point.