In June 2019, Facebook excitedly announced Libra, a cryptocurrency that promised to revolutionize global finance. Backed by blockchain and an alliance of giants like Visa, PayPal, and Uber, Libra sought to facilitate instant and accessible payments through WhatsApp and Messenger, tapping into the social network’s more than 2,000 billion users. However, what began as an ambitious vision ended in a resounding failure three years later, when Meta, Facebook’s parent company, sold the remains of the project in 2022.
The Libra dream quickly ran into insurmountable obstacles. Regulators around the world, from the European Central Bank to the US Federal Reserve, expressed concerns about money laundering risks, data privacy and financial stability. Facebook’s scale, far from being an advantage, raised fears that a private currency could challenge countries’ monetary sovereignty. Soon, key partners like PayPal and Visa abandoned the project, leaving Libra in a vulnerable position.
Certificate
Main Cryptocurrencies Course
Basic levelBit2Me Academy brings you a new course in which you will learn everything you need about the most important cryptocurrencies that exist today.
In an attempt to survive, Facebook changed its name to Diem and adjusted its approach, proposing stablecoins pegged to traditional currencies rather than a single global cryptocurrency. But even these changes failed to calm regulators or restore confidence. In January 2022, the Diem Association sold its assets to Silvergate Capital for $200 million, marking the end of the initiative.
Libra/Diem’s downfall reflects the challenges for a tech giant to disrupt a highly regulated sector. While blockchain technology remains promising, Facebook’s experiment made clear that ambition is not enough without institutional backing. What could have been a financial revolution was left as a reminder of the limits of digital power.
