Facebook cryptocurrency is dead: Facebook’s cryptocurrency goals could be over. Libra, known as Diem, represented Meta’s attempt to enter this world of stable coins.
However, after intensive scrutiny by Congress and The U.S. Federal Reserve, plans to issue Diem appear to have fallen through.
Is Facebook’s cryptocurrency gone?
Based on Bloomberg reports, the Diem Association is the Meta-supported initiative that came up with the Diem and is currently discussing how to market its assets most efficiently.
Since Diem has never been able to get anywhere, any money that raises will use to repay the money invested by investors.
When Facebook announced its plans to issue stable coins in 2019, the company came under the wrath of everyone. The public was unhappy, and the media wasn’t an enthusiastic supporter. Even the authorities were also skeptical.
But, Zuckerberg isn’t one to be a person who lets his hatred for all that his company does stop him from signing the plan. The currency was first referred to as”the Libra and design to be used to pay for payments in Facebook Messenger and WhatsApp.
Facebook cryptocurrency is dead
This initiative was far from an exclusive program. eBay, Lyft, MasterCard, Spotify, Uber, Visa, and many others were also founding members of the Libra Association.
However, when regulators looked at Facebook’s crypto-related dreams with suspicion, several investors walked out before making a total commitment.
Despite challenges, the project continued to grow, altering its title to Diem and eventually finding an issuer at Silvergate Bank.
However, the Federal Reserve refused to give an explicit endorsement to the project. And Silvergate not able to issue Diem at the risk of a significant government investigation.
Without an issuer, Diem is dead and leaves Meta and investors another option to stop the project.
Additionally, there was a sense that Federal Reserve didn’t have confidence in Meta’s capability to regulate its usage. Particularly given the numerous privacy, misinformation, and fraud issues.
Whether this will hinder Meta from exploring cryptocurrencies in the future remains to determine.
READ MORE: Pokemon GO Confirms Date for Pokemon Community Day in February 2022
