Update: Facebook’s Libra cryptocurrency, later renamed Diem, was shut down after facing strong pushback from global regulators. Originally planned as a stablecoin backed by real assets, it lost support from key partners like Visa and PayPal. Despite rebranding and narrowing its focus, it couldn’t overcome legal and political hurdles. In 2022, the project was sold off and ended completely; its failure largely blamed on intense regulatory pressure.
Facebook’s Libra currency project is still moving forward despite five major payment providers dropping out.
The project’s 21 remaining members said on Monday that they still plan on launching the new digital currency in 2020.
Since Facebook unveiled plans for the cryptocurrency project in June, seven partners have dropped out, including Visa, Mastercard, Stripe, eBay, PayPal, Mercado Pago and Booking Holdings.
Spotify, Uber and PayU are some of the partners that decided to stick with the project.
Unlike Bitcoin, Libra is not a decentralized currency. Libra relies on trust in the Libra Association as “a de facto central bank”.
