Facebook’s crypto project may be discontinued

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Reports suggest that Facebook’s cryptocurrency project may not see the light of the day. The project formally known as Libra, has suffered a lot of backlashes from governments and institutions who are against the idea of a Facebook-backed digital currency.

According to Bloomberg, the Diem Association set up by Facebook to manage the digital token is exploring a sale of its assets. The decision to sell of its assets may not be unconnected with resistance from regulators.

Things started falling apart for Diem when the US Federal Reserve piled pressure on Silvergate, the banking partner. The pressure from the Fed may have eventually led to the decision to put finally bring an end to the project.

Responding, a Facebook spokesperson, Michael Crittenden told The Verge that the Bloomberg’s story contained “some factual errors” but declined to comment further.

In October 2019, some major partners announced their withdrawal from the Libra non-profit. Some of the partners that announced their pulling out include Visa, MasterCard, eBay, Stripe, Mercado Pago, and PayPal.

This came as a major blow to Facebook who planned to distribute its cryptocurrency globally in 2020. Confirming its pull-out per The Verge, a spokesperson for Visa said: Visa has decided not to join the Libra Association at this time,” the spokesperson said. “We will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations.”  

Criticism from different quarters had trailed the announcement of Libra, and the withdrawal of the companies no doubt had serious effect on the proposed currency.

In 2019, Jack Dorsey at a Twitter media event held in New York City said “hell no” when a question was raised as to if he would join. Dorsey explained further that the entire project [Libra] was not necessary when it comes to pulling Facebook’s broader goals of democratizing the financial system. “I don’t know if it’s a gimmick,” Dorsey said, “but a cryptocurrency wasn’t necessary to make that work

It’s not an internet open standard that was born on the internet,” Dorsey said. “It was born out of a company’s intention, and it’s not consistent with what I personally believe and what I want our company to stand for.

in response to Bloomberg’s story, Dorsey tweeted: “carpe diem.”

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Author: Ola Ric

Ola Ric is a professional tech writer. He has written and provided tons of published articles for professionals and private individuals. He is also a social commentator and analyst, with relevant experience in the use of social media services.

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