What Happened to Facebook’s Crypto?

By Aleksandra Wilson
3 min read October 27, 2021

It’s been over two years since Facebook’s crypto was announced; this was made public back in 2019. Usually, the goal of new cryptocurrencies is to get into the stablecoin market, so why is Libra not here yet? 

The Plans for Facebook’s Crypto

Two years ago, Nassim Eddequiouaq and Riyaz Faizullabhoy left the company Anchorage to start working on Facebook’s crypto wallet. Facebook’s crypto, also known as Libra, was announced for the first time back in June 2019. In the crypto space, that counts as ages. First, it was pitched as a global currency without borders. The plan for the token was to be backed by the Libra Reserve, which is a compilation of assets with low volatility. Such assets were supposed to be Government securities and bank deposits, to name a couple.

What Happened?

Only in the first few months, the Libra Association lost many of its founding members. During that first wave, important companies such as MasterCard, Stripe, Paypal, and eBay were among the deserters. Then, in an attempt to get a new fresh start, Facebook’s crypto changed its name to Diem, and the wallet app created to hold it was renamed Novi. However, the name wasn’t the only thing that changed; its goals and ambitions were also downgraded. The new concept set the coin as a simple stablecoin pegged to the US dollar. That is far from being the borderless currency promised at the beginning. The market is full of stablecoins accessible at more serious companies such as Paxos, Binance, and Circle.

So, Where Did the Crypto End Up?

Now, two years after it was first announced, it’s worth asking: is there anyone who wants to acquire crypto from Facebook? Facebook’s principal founder, Mark Zuckerberg has been involved in legal issues regarding users’ privacy and data protection on his social network in the past couple of years. 

Zuckerberg has been called to court several times to lend testimony about the allegations against him and the platform for which he’s responsible. The irony here is that Facebook’s crypto is not only his thing; it’s a whole project backed up by a group of companies based in Switzerland. Part of the plan is to decentralize the coin progressively. The biggest problem they’re trying to solve right now is that the project was first made public by Facebook. Also, Zuckerberg, who is an executive of Facebook, has become the face of it. Therefore fortunately or unfortunately, if the project will succeed, it will be determined by Facebook’s future reputation status. . 

About the Future

Although it seems like Zuckerberg has already moved onto his next project, Metaverse, there’s hope for Facebook’s crypto. The most significant advantage that the project owns is the 2.9 billion users the network has. Whatever stablecoin the company decides to embrace, a substantial number of users will give it a try. There’s still hope for the cryptocurrency, but if it’ll be a long-term sustainable project, it remains to be seen.

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