Facebook's Libra crypto project, now called Diem, has been sold off

Polycount

Posts: 3,013   +589
Staff member
In context: It feels like just about every company is trying to hop on board the cryptocurrency train, and Facebook was no different. Back in 2019, the social media giant unveiled "Libra," its own cryptocurrency that was intended to provide underserved people with access to a financial network powered by the blockchain.

Naturally, as with any big project Facebook unveils, the world was skeptical, to say the least. So skeptical, in fact, that many of Facebook's would-be financial partners (including PayPal, Mastercard, and others) dropped support for the crypto before it even got off the ground. It didn't help that Lawmakers were worried Facebook would have too much control over the crypto; given how widespread the social media company's reach is throughout the world.

The Libra Association was designed to combat those fears -- it would've handed control over the crypto to a consortium of companies, including the ones mentioned above. However, as of now, Libra -- which rebranded to Diem in 2021 -- has been killed off for the time being. Or, more accurately, its assets have been sold to the Silvergate Capital Corporation, and Facebook's plans for Diem will likely never see the light of day.

This news comes directly from Diem's CEO, Stuart Levey, who published a lengthy statement discussing the Association's decision on Monday. As for concrete explanations, there aren't many to be found there. Levey merely notes that after an extended dialogue with federal regulators, it became clear that the project "could not move ahead," despite allegedly receiving high praise from an unnamed "senior" regulator.

That's bad news for Facebook's crypto ambitions, but it was clear from the start that Libra had the odds stacked against it. After losing support from several high-profile partners, it just didn't have the footing it needed to fully realize its potential.

Levey still remains hopeful that a crypto with a similar design to Diem could succeed in the long run. Indeed, he feels that, under Silvergate's leadership, the ideals and principles behind Diem can thrive. But only time will tell if his hopes are well-founded.

Permalink to story.

 

emmzo

Posts: 639   +841
Libra would have challenged the dollar, more than Bitcoin ever would, so it was killed off immediately. That also means if Bitcoin will even slightly threaten the dollar, it will have the same fate, yet crypto pundits still believe it will be worth a gazillion dollars.
 

Mister_K

Posts: 2,167   +864
Libra would have challenged the dollar, more than Bitcoin ever would, so it was killed off immediately. That also means if Bitcoin will even slightly threaten the dollar, it will have the same fate, yet crypto pundits still believe it will be worth a gazillion dollars.

The adoption of BTC is much higher than Libra. This comment makes no sense. Yeah, you can make sanctions against BTC trading but it isn't going anywhere.
 

NightAntilli

Posts: 911   +1,184
Libra would have challenged the dollar, more than Bitcoin ever would, so it was killed off immediately. That also means if Bitcoin will even slightly threaten the dollar, it will have the same fate, yet crypto pundits still believe it will be worth a gazillion dollars.
It cannot suffer the same fate because there is no one party, company or entity that owns Bitcoin.

Bitcoin is definitely threatening all major fiat currencies on the planet, including the dollar. Their only card left to play is the CBDC. And if that comes to fruition, humanity is in deep trouble. It will be monetary tyranny forever. Unless everyone adopts Bitcoin instead.

When the time comes, choose wisely. Don't say you weren't warned.
 

terzaerian

Posts: 1,386   +1,985
Libra would have challenged the dollar, more than Bitcoin ever would, so it was killed off immediately. That also means if Bitcoin will even slightly threaten the dollar, it will have the same fate, yet crypto pundits still believe it will be worth a gazillion dollars.
Just like how the federal government ended terrorism and drugs, right?

Bitcoin and the cryptos that adhere to the principles of decentralization will outlive all of them.