Zuckerberg already warned investors that Libra might never get off the ground after facing so much scrutiny and lots of backlashes from general public. Recently, the Cryptocurrency lost it’s partnership from PayPal which would have bolstered the service into the mainstream.
But one organization that is constantly on Facebook‘s neck everytime is the European Union or EU which questioned Facebook about the potential threats the platform poses to the general public using it.
The European Commission has therefore requested that Facebook and the Libra Association which is a body tasked to supervise the Digital Currency to answer questions which relates to financial stability, money laundering and data privacy risks.
The Financial Times saw the Commission’s questionnaire just last week. Valdis Dombrovskis’ efforts to asses whether Libra project should be regulated by the EU was because of lots of scandals and other underlying issues Facebook had already proven itself unworthy of being trusted anylonger.
Facebook on it’s own had been facing lots of scrutiny while US Democratic Presidential candidates are even vowing to break large corporations like Facebook up.
Parts of the roasting involved the Libra’s founders who were subjected to questioning by 26 central bank officials in what appears to be a counter-attack between the company and the governmental regulators just this past month.
Prior to that, in August, Brussels’ antitrust body raised concerns about Libra potentially causing competition restrictions. Meanwhile the loss of PayPal is really a big deal and what’s even worse is that other payment processors like MasterCard, Visa are all pulling out as well.