Libra, Facebook’s cryptocurrency project, was initially introduced with great fanfare but ultimately faced significant regulatory hurdles and criticism. Libra (Facebook’s cryptocurrency) updates, the project aimed to create a simple, low-fee global digital currency, backed by a basket of major currencies and government debt securities, providing price stability.

Key Features of Libra

– Stablecoin: Backed by real assets, reducing volatility and making it more suitable for daily transactions.
– Blockchain Technology: Utilized permissioned blockchain, allowing only members of the Diem Association to access the ledger.
– Low Fees: Aimed to provide cheaper fees than traditional money sending services.
– Wide Accessibility: Envisioned as a mainstream digital currency for anyone, particularly targeting the unbanked population.

Challenges and Controversies

Libra (Facebook’s cryptocurrency) updates

– Regulatory Backlash: Faced opposition from government regulators in the European Union, the USA, and other countries, citing concerns over monetary sovereignty, financial stability, privacy, and antitrust issues ².
– Name and Logo Issues: Renamed from Libra to Diem in December 2020 due to legal challenges ².
– Lack of Decentralization: Criticized for not being fully decentralized, despite initial plans ¹.

Current Status

The Diem Association shut down in January 2022, and the project was sold to Silvergate Bank, which later wrote off its Diem investment in January 2023 . Unfortunately, this means Libra, now rebranded as Diem, is no longer being developed or supported.