Cryptocurrency

Why Facebook's libra cryptocurrency is in trouble

How Facebook's libra lost major partners and provoked the US government
VIDEO14:5114:51
How Facebook's libra lost major partners and provoked the US government

When Facebook first announced it was getting into the crypto business—with a basically unregulated currency called Libra—the reaction from Wall Street and government bankers was about as expected. There was skepticism and pushback from both quarters. 

Fast-foward a few months, and Libra is in trouble. The social media giant had lined up a long list of corporate backers for the initiative, including major players in the payments space. And in October 2019, several prominent backers began to back out.

When asked for comment about the recent issues, a Facebook spokesperson referred CNBC to a statement from the Libra Association that said: "The Association is eager to pursue its mission of building a better payment network, broadening access to essential financial services, and lowering costs for billions of people who need it the most."

Watch the video above to find out how Facebook's crypto future got into serious trouble.