According to the report, Facebook no longer intends to make the Libra token — the actual blockchain-based cryptocurrency it’s in the process of developing in partnership with the nonprofit Libra Association — the centerpiece of its digital payments strategy. Instead, Facebook’s Libra project will reportedly transition to supporting both existing government-backed currencies, like the US dollar and the euro, and the Libra token when it is eventually completed and ready to launch.
Additionally, The Information says Facebook is delaying the launch of its separate Calibra digital wallet, which was to be a primary showcase for the Libra technology by allowing anyone with a smartphone to acquire and store the cryptocurrency and then pay for various goods with it. The wallet will now support multiple currencies, of which Libra will be just one.
Facebook will no longer promote its own digital currency and instead use existing ones
Calibra, originally slated to launch this summer, is now coming out in October, The Information reports. The wallet, instead of becoming available all over the world at launch, may have its availability restricted to whatever government-backed currencies the Libra project eventually supports within the app. That could slow Calibra’s rollout. The Information says Calibra’s core money-storing and transfer features are still scheduled to come to both Facebook Messenger and WhatsApp, too, although it’s unclear what the timeline for that process will be relative to Calibra’s planned October launch.
“Reporting that Facebook does not intend to offer the Libra currency in its Calibra wallet is entirely incorrect. Facebook remains fully committed to the project,” a Facebook spokesperson said in a statement given to The Verge, referencing The Information’s initial assertion that the company was no longer planning to support the Libra token in its digital wallet. The Information has since corrected its report.
The Libra project was first announced in June of last year as a bold yet risky endeavor to revolutionize money transfer and position Facebook and its partners on the ground floor of a new, blockchain-based digital payments industry. It had two parts: a Libra token, designed broadly similar to other cryptocurrencies like Bitcoin but with fundamental differences intended to make it more stable and less of a speculative asset, and a blockchain network that would be the technical foundation of the token and the tool for verifying transactions and token ownership.
Facebook anticipated at least some scrutiny, so it created a nonprofit, called the Libra Association, of which Facebook and its new Calibra subsidiary would represent only one member. It included, at launch, 27 other companies and nonprofits. That group, based out of Zurich, Switzerland, has been tasked with overseeing the cryptocurrency’s development, as well as the blockchain network that would support it. The currency was also to be supported by a pool of assets, including existing currencies from around the world, contributed by the various participating members, which at launch included big names like Mastercard, PayPal, Stripe, and Visa.
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Despite those measures, the Libra project was met with swift and vocal backlash from across the political spectrum. Regulators were concerned about Facebook’s potential outsize influence on the project, due to the company having conceived of the idea and having a financial interest in its success, and the unforeseen consequences of allowing for-profit companies to begin issuing currencies and injecting themselves into global economics and geopolitics.
There were also concerns over how to classify the Libra token, and how the entire platform would be properly regulated and by whom, especially as it moved toward offering banking services like lending, which Facebook openly expressed interest in via Calibra at the time of Libra’s announcement. Chief among the concerns was the ability for the currency and the technology it sat on top of to allow people to move money around undetected and away from the banking system, potentially leading to money laundering and other criminal activities.
The project began hitting serious snags last fall when regulatory pressure and a lack of firm response from Facebook and its various Libra defenders led to Mastercard, PayPal, Stripe, and Visa all bowing out of the Libra Association in quick succession. Since then, Facebook’s blockchain chief David Marcus, a former PayPal executive who ran Facebook Messenger for years, has tempered the project’s overall goals when speaking publicly about it. Now, The Information reports, that’s finally translating to product delays and measures intended, it seems, to appease regulators.
FAQs
According to the report, Facebook no longer intends to make the Libra token — the actual blockchain-based cryptocurrency it's in the process of developing in partnership with the nonprofit Libra Association — the centerpiece of its digital payments strategy.
Why did Facebook stop Libra? ›
They said they wanted to revolutionize the global financial system. The project ran in to fierce opposition from policymakers alarmed that Libra could give Facebook too much control over the money system, and infringe on users' privacy.
Why PayPal's stablecoin is likely to succeed where Facebook's Libra failed? ›
Why PayPal's stablecoin is likely to succeed where Facebook's Libra failed. WASHINGTON, Aug 21 (Reuters) – PayPal's (PYPL. O) stablecoin is likely to succeed where Facebook's failed, thanks to the payment giant's standing in Washington and policymakers' greater understanding of the issues in the last three years.
What happened to Libra currency? ›
Libra currency units will be retired as they are redeemed for conventional currency. Initial reconciliation of transactions will be performed at each service partner, and the blockchain's distributed ledger will be used for reconciliation between service partners.
Why is Facebook getting into cryptocurrency? ›
In a recent blog post, head of Facebook Financial (F2) David Marcus said the project is aimed at tackling systemic problems with today's “broken payments infrastructure,” which leads to high transaction fees, slow cross-border payments, and millions of people around the world remaining unbanked.
Why are Libras so closed off? ›
Libras are hard to get to know because they are afraid to open up. This sign doesn't like feeling vulnerable. They may open up over time, but they're default setting is to keep their emotions in check. To prevent issues, encourage them to share their feelings.
What is the new name for Libra cryptocurrency? ›
The Libra cryptocurrency is getting a new name today, Diem, in an effort to show that the project has “organizational independence” as it attempts to get regulatory approvals for launch.
What happens to Usdt if the dollar collapses? ›
Each unit of USDT is intended to maintain a value equal to that of the US dollar. This means that the dollar devaluation can reduce the USDT's purchasing power globally. Purchasing power refers to the number of goods or services that can be acquired using a specific asset within a given timeframe.
Which digital coin is backed by the US dollar? ›
USD Coin (USDC) is a digital currency that is fully backed by U.S. dollar assets. USDC is a tokenized U.S. dollar, with the value of one USDC coin pegged as close to the value of one U.S. dollar as it can get. The value of USDC is designed to remain stable, making USDC a stablecoin.
Is the US dollar under threat from Cryptocurrencies? ›
Federal Reserve Governor Christopher Waller said the US dollar is likely to keep its preeminent status globally despite recent threats from cryptocurrencies, the rise of the euro and China's promotion of its own yuan.
Leadership. Libra Group is privately owned by the Logothetis family, whose members fill several key roles in the organization. George Logothetis is the company's executive chairman and founding CEO, appointing Manos Kouligkas to succeed him as CEO in 2022.
How much is a Libra coin worth in USD? ›
LIBRA to USD Chart
Libra Protocol (LIBRA) is worth $0.00003932 today, which is a 1.3% increase from an hour ago and a 17.7% decline since yesterday. The value of LIBRA today is 59.7% lower compared to its value 7 days ago. In the last 24 hours, the total volume of Libra Protocol traded was $4,129.89.
How much is the Libra coin worth? ›
Price of LIBRA today
The live price of Libra Protocol is $ 0.000027 per (LIBRA / USD) with a current market cap of $ 0 USD. 24-hour trading volume is $ 339.49 USD. LIBRA to USD price is updated in real-time.
What is Libra backed by? ›
It was a stablecoin, which meant that it would be backed by a basket of assets, which include major currencies and government debt securities, which give the cryptocurrency stability. The blockchain technology behind Libra (and eventually Diem) was sold to Silvergate Capital Corporation in January 2022.
What crypto does Mark Zuckerberg own? ›
NO,He don't own a Crypto. Last year May, Zuckerberg publicly stated that he own a Bitcoin, But not what you think. He mentioned his pet Goat whose name as the Digital Currency.
Does Mark Zuckerberg have cryptocurrency? ›
Cryptocurrency may be the future, and while Elon Musk rallies support behind meme-cryptocurrency Dogecoin, Facebook creator, Mark Zuckerberg just shared that he too, owns Bitcoin – but there's a catch. Facebook CEO Mark Zuckerberg's on Tuesday posted a photo of his bitcoin investment on Facebook – except the post ...
When did Libra end? ›
In astrology, Libra is the seventh sign of the zodiac, considered as governing the period from about September 22 to about October 23.
Why did Facebook Diem fail? ›
Diem ultimately unraveled because of regulatory scrutiny. The project's grand ambitions for a global digital currency were routinely scaled back as it faced more and more pushback and red tape. Eventually the U.S. Federal Reserve warned that a Diem stablecoin may never be approved, all but ending the Diem dream.
How much did Facebook invest in Libra? ›
The Libra Association will consist at first of up to 100 founding members including Facebook, each of which will invest at least $10 million to fund the association's operations, and receive interest earned off the reserve.
What happened to Facebook's crypto? ›
At one point, Meta planned to issue and accept the Diem cryptocurrency, which was backed by a Facebook-led association, in conjunction with the Novi wallet. However, the Diem cryptocurrency project, overseen by the Meta-backed Diem Association, faced intense scrutiny from regulators, which led to its demise.
