image of this article category

Facebook's Libra currency abandoned by major financial companies

06.02.2022 05:39 AM
Latest
Facebook's Libra currency abandoned by major financial companies
dooklik website logo
The Meta group, which owns Facebook, announced the official release of its digital currency project, which it launched amid great media fanfare in 2019.
share
share this article on facebook
share this article on twitter
share this article on whatsapp
share this article on facebook messenger
Facebook's Libra currency abandoned by major financial companies
The Meta group, which owns Facebook, announced the official release of its digital currency project, which it launched amid great media fanfare in 2019.

Diem, which was working on the project, intends to sell its main assets and withdraw completely from the project due to the failure to convince the regulators.

Diem will sell the company's intellectual property and other assets for $182 million to Silvergate Capital Corporation, a cryptocurrency bank.

The social network giant had ventured into the field of virtual currencies with the launch of Libra in 2019, which would have introduced a new payment method outside of traditional banking circles.

Aware of regulators' concerns about a privately operated currency, the US group then decided to entrust its management to an independent entity based in Geneva, Switzerland, which it initially called "Libra".

This initiative was on the right track, but "it became clear during our discussions with the US authorities that the project could not progress any further," said Stuart Levy, director general of the foundation.

"The idea of Facebook making a cryptocurrency has everyone panicked," analyst Rob Enderle of the Enderle Group told AFP.

He added, "For the regulatory bodies, it went too far, as they openly declared that they do not trust" Facebook" in this project.

Essentially, Facebook envisioned a new payment method that would allow buying goods or sending money as easily and quickly as sending an instant message, but since its launch the project has drawn strong criticism from central banks, regulators, and policymakers alike.

These authorities have expressed concerns about risks to the stability of the financial system, the fight against money laundering or the protection of personal data.
Related Articles
doolik website logo
Mark Zuckerberg has issued a reminder - and apparently a warning - to Facebook Messenger users who take screenshots of their chats. another person.
doolik website logo
Media reports have said there has been an 87 percent drop in search volume for the term Facebook in the past decade, with Banklessti revealing that the app's aging audience, a growing lack of interest in the social networking site, along with the TikTok boom, is the reason behind declining interest in global searches. on Facebook.
doolik website logo
Samsung will hold its next conference on March 17 to unveil new versions of its Galaxy A series of medium phones.
Live Video Streaming
Live video streaming lets you engage with your audience in real time with a video feed. Broadcast your daily show to your audience with no limits, no buffering and high quality videos. Reach all devices anytime anywhere with different video qualities that suits any device and any connection.
$1,120/YE*
The website uses cookies to improve your experience. We’ll assume you’re ok with this, but you can opt-out if you wish.
ACCEPT