The American internet giant thus acknowledges defeat in its once extensive ambitions in the field of digital payments. The Wall Street Journal and the Financial Times reported.
Facebook, which was renamed Meta Platforms last year, unveiled a plan to create a new digital currency in June 2019. The new currency was originally to be called the pound, but later changed its name to diem.
The project faced obstacles from the beginning. Facebook’s plans have raised concerns among regulators, central bankers and politicians that the new digital currency could destabilize monetary policy, facilitate money laundering and undermine privacy.
To create and use a new currency Germany then opposed it, similar opinion also held by representatives of France. Representatives of the US Congress did not like the idea either.
In 2019, the company’s chief Mark Zuckerberg reassured members of Congress about the benefits of the new virtual currency. According to Zuckerberg, it should reduce costs and help people become more involved in the global financial system. However, doubts persisted and the digital currency from Facebook lost support.
Facebook, together with a number of partners, including Paypal, Mastercard and Visa, formed a Libra Association consortium to manage the project, which was later renamed the Diem Association. However, due to fears of resistance from regulators and politicians, some companies withdrew from the consortium soon after its creation.
Facebook introduced its own cryptocurrency pound (2019):
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