Facebook, in its latest quarterly report (Form 10-Q) for the U.S. Securities and Exchange Commission (SEC), which was filed on July 25, says that there is no guarantee that Libra or any associated products and services (such as Calibra) "will be made available in a timely manner, or at all."
SEC Form 10-Q is "a comprehensive report of a company's performance submitted quarterly by all public companies to the Securities and Exchange Commission." This form "provides investors with the financial position of companies on an ongoing basis" and contains "financial statements, management discussion and analysis, disclosures, and internal controls."
In the "Risk Factors" section of this report, Facebook makes several interesting comments regarding its proposed new cryptocurrency Libra:
- "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."
- "Libra has drawn significant scrutiny from governments and regulators in multiple jurisdictions and we expect that scrutiny to continue."
- "As this initiative evolves, we may be subject to a variety of laws and regulations in the United States and international jurisdictions, including those governing payments, financial services, and anti-money laundering."
- "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. In addition, market acceptance of such currency is subject to significant uncertainty. As such, there can be no assurance that Libra or our associated products and services will be made available in a timely manner, or at all."
- "We do not have significant prior experience with digital currency or blockchain technology, which may adversely affect our ability to successfully develop and market these products and services."
In a statement to CNBC on Monday, a Facebook spokeswoman said:
“We know that the journey to launching Libra will be a long one and that we cannot do this alone. Engaging with regulators, policymakers, and experts is critical to Libra’s success. This was the whole reason that Facebook along with other members of the Libra Association shared our plans early.
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