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Financial and business news outlet Bloomberg has reported that the project may have reached a dead-end, citing a source related to Facebook's stable coin project Diem because the assets have to be sold to get money back to investors.
The project is a worthy endeavor by Facebook. It attempts to build a Metaverse world on its platform with a blockchain ecosystem supporting all sectors. It includes cryptocurrency payments. However, Facebook's coin project has been in trouble for a long time. It is comparable to a car whose wheels are falling off one side at a time until they are about to run out. And the project may eventually have to stop. If you’re interested in knowing the reason why bitcoin ranks at the top of cryptocurrencies click here to learn more.
What is Diem? That Facebook sent instead of Libra
In 2019, Facebook confirmed it was developing its digital coin and blockchain technology. Using the currency name "Libra
If you look at it from the current point of view, it’s not uncommon for Silicon Valley-based tech companies like Facebook to turn to their coins, but in the middle of 2019, cryptocurrencies are not yet widely known. So as wide as today, Facebook's movement counts as "World shock news" ever. After all, it's not just jumping into a volatile asset ship while regulators around the world shake their heads. But also because Facebook announced it would tie the currency to real-world assets. Or what we call today Stable Coin.
Libra's initial currency binding was not tied to a particular currency. But want to bind the currency to a "currency basket" that includes major global currencies such as the dollar and the euro. The announcement received a lot of negative feedback from the "owners" of the currency.
Regulators do not accept
In 2019, both the United States and Europe, such as France and Germany, will heavily attack Facebook's Libra currency. The main reason for this is the issue of money laundering and the loss of financial sovereignty for private companies.
The latter reason is a common concern among central banks around the world. Because Facebook is so big compared to the country's population of 2.4 billion, there is a possibility that the primary currency will lose its popularity. And thus, the central bank can no longer control the currency to look after the economy.
In addition to Libra, which Facebook will spearhead in 2019, several significant partners will be involved in the global financial system, such as PayPal, Visa, MasterCard, etc. However, Facebook has made it clear that it will not issue its stable coin until it is recognized by regulators, the owner of the currency Facebook wants to bind itself to, leading founder Mark Zuckerberg. As a result, Facebook, Along with tech spearhead David Marcus, must testify to Congress to clarify what happened.
By the end of 2019, several significant partners withdrew from Facebook's initiatives, including PayPal, Visa, Mastercard. In addition, financial and business news outlet Bloomberg has reported, citing a source related to Facebook's stable coin project Diem that the project may have reached a dead end because the assets have to be sold to get money back to investors.
The project is a worthy endeavor by Facebook. It attempts to build a Metaverse world on its platform with a blockchain ecosystem supporting all sectors. It includes cryptocurrency payments. Based on the report by trustpedia.io/dictionary/a/after-hours-trading/, Facebook's coin project has been in trouble for a long time. It is comparable to a car whose wheels are falling off one side at a time until they are about to run out.