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Facebook’s crypto ambitions may be dashed as its stablecoin plan falls apart
According to reports, Facebook's — now Meta's — attempt to get into the mass crypto market is finally done, in a surprising bit of bad economic news for the social network firm.
Meta launched the Diem Association in 2019, with the goal of creating a futuristic crypto payments network. The objective appears to have failed, with the company selling its technology to a small bank in California that serves bitcoin and blockchain startups for about $200 million, according to the Wall Street Journal. The information is offered by an unknown source who is reportedly familiar with the situation.
The Libra project, which debuted in 2019 as a means for Facebook users to send money to each other as easily as sending a text message, was intended to be a method for users to send money to each other as easily as sending a text message. Although this is already a function of the Messenger app, the new platform would have incorporated bitcoin payment possibilities.
Purchases could have been made on Facebook as well as the rest of the internet, potentially revolutionising how cryptocurrencies are transacted in everyday life.
Libra was able to attract large online transaction giants such as PayPal, Visa, and Stripe as investors, but due to heavy regulatory investigation, some significant members withdrew before completely committing. The plan was for Meta to mine stablecoins while Libra governed their management and use. Almost immediately, the project was greeted with opposition.
Government Officials Question Zuckerberg on Privacy and Security Concerns
Government officials were afraid that the project could jeopardise consumer data privacy and that Libra could be readily abused by money launderers and terrorist organisations. Mark Zuckerberg was even brought before Congress to testify about what Meta was doing to guarantee security mechanisms were in place and to protect against illicit behaviour. The scrutiny was too much for investors, and after several high-profile corporations backed out, the project's days were numbered.
The proceeds from the present selloff will ostensibly be used to repay investors. The revelation is also a setback for cryptocurrency aficionados who were hoping to bring digital currency into the mainstream. However, without Federal Reserve permission, integrating private crypto payments into ordinary mobile messaging apps may remain a distant dream.
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By Crypto PiratesAccording to reports, Facebook's — now Meta's — attempt to get into the mass crypto market is finally done, in a surprising bit of bad economic news for the social network firm.
Meta launched the Diem Association in 2019, with the goal of creating a futuristic crypto payments network. The objective appears to have failed, with the company selling its technology to a small bank in California that serves bitcoin and blockchain startups for about $200 million, according to the Wall Street Journal. The information is offered by an unknown source who is reportedly familiar with the situation.
The Libra project, which debuted in 2019 as a means for Facebook users to send money to each other as easily as sending a text message, was intended to be a method for users to send money to each other as easily as sending a text message. Although this is already a function of the Messenger app, the new platform would have incorporated bitcoin payment possibilities.
Purchases could have been made on Facebook as well as the rest of the internet, potentially revolutionising how cryptocurrencies are transacted in everyday life.
Libra was able to attract large online transaction giants such as PayPal, Visa, and Stripe as investors, but due to heavy regulatory investigation, some significant members withdrew before completely committing. The plan was for Meta to mine stablecoins while Libra governed their management and use. Almost immediately, the project was greeted with opposition.
Government Officials Question Zuckerberg on Privacy and Security Concerns
Government officials were afraid that the project could jeopardise consumer data privacy and that Libra could be readily abused by money launderers and terrorist organisations. Mark Zuckerberg was even brought before Congress to testify about what Meta was doing to guarantee security mechanisms were in place and to protect against illicit behaviour. The scrutiny was too much for investors, and after several high-profile corporations backed out, the project's days were numbered.
The proceeds from the present selloff will ostensibly be used to repay investors. The revelation is also a setback for cryptocurrency aficionados who were hoping to bring digital currency into the mainstream. However, without Federal Reserve permission, integrating private crypto payments into ordinary mobile messaging apps may remain a distant dream.
Support us!