A couple of years ago, Libra, the Facebook cryptocurrency that would be launched in 2021, was announced. However, Facebook’s cryptocurrency had some problems , so they later changed their name from Libra to “Diem”. Now, Facebook’s cryptocurrency is in trouble again because some regulators oppose it and it likely won’t be launched.
Keep in mind that Meta, the company that owns Facebook, Instagram, and WhatsApp, is bringing out new features for its platforms and doesn’t just want to create its own metaverse. In fact, Meta will also allow you to buy and sell NFTs with Facebook and Instagram. Likewise, Meta has continued to develop its own cryptocurrency, although it is having some problems .
Regulators don’t want Facebook’s cryptocurrency
It seems that from the United States National Reserve they do not want Facebook’s cryptocurrency to be launched . In fact, the National Reserve has apparently pressured Silvergate, the company that would partner with Facebook to sponsor its cryptocurrency, to stop supporting Diem’s creation.
Take into account that the pressures that the US National Reserve has exerted on Silvergate have caused Facebook to start considering the idea of selling the assets that relate it to its cryptocurrency. Please note that the division of Meta that is focused on developing its cryptocurrency is called Asociación Diem. So Facebook may be considering selling the entire Diem Association .
It is also important that you consider that if Meta is considering selling the assets of the Diem Association, it is because they cannot find a way to comply with the regulators to continue with the project. In fact, Facebook has had to make multiple changes to the Diem ecosystem and how it would work, but regulators still haven’t quite approved of the idea.
In addition, there are other signs that Facebook will not launch its cryptocurrency . Note that Meta has already launched its own cryptocurrency wallet, which is the one they had developed for Diem. However, the Meta wallet has been released to be used with a Paxos stablecoin. Likewise, most of the first team that came up with and started working on Libra and its wallet have already left the project.
Source | Bloomberg
