Facebook’s Libra cryptocurrency project and its Failure | 10% for @tron-fan-club

Facebook is a leading social media platform in the World. It is among top 10 companies in the World. In June 2019, Facebook announced the launch of a new cryptocurrency project called Libra. As this is a crypto based project so crypto World got some positive feedback in the market. This announcement sent ripples throughout the financial world. Many were talking about the implications of a social media giant launching its own cryptocurrency. Libra was designed to be a stablecoin. This Libra was pegged to a stable asset like a currency or commodity. So it’s concept is stable coin concept. The goal of a stablecoin is to provide the benefits of cryptocurrency like fast and cheap transactions. It was avoiding the volatility that has plagued other cryptocurrencies like Bitcoin.

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Facebook's vision for Libra was to create a global currency that could be used by anyone with a smartphone. Libra would be backed by a basket of currencies and other assets. For this feature it is more stable than other cryptocurrencies. It would have been managed by the Libra Association. This announcement had a lot of excitement but many regulators and policymakers were worried about the potential risks and implications of a large tech company creating its own currency. Such a big companies own currency can influence a lot in the digital money concept. Money laundering or terrorism financing was the matter of concern. Another concern was that Facebook's vast user base could give it too much control over the global financial system. Its nature like centralization or decentralization was a big issue as it was not clearly specified which is very much needed for a cryptocurrency specially to be decentralized.

Facebook pledged to work with regulators and policymakers to address any potential risks associated with Libra. The company also emphasized that it would not have direct control over the currency and that the Libra Association would operate independently. Still the announcement of Libra sparked a backlash from some governments and regulators. France and Germany immediately announced plans to block the currency from being used in their countries. The U.S. Congress also held hearings to discuss the potential risks and benefits of Libra. Thus Libra project faced additional challenges. Several high-profile companies, including Visa, Mastercard, and PayPal withdrew from the Libra Association. Facebook also faced pressure from lawmakers and regulators. Everyone questioned the company's ability to manage such a complex and potentially risky project. Finally, Facebook announced in April 2020 that it was scaling back its plans for Libra. The company said that it would focus on launching a simpler version of the currency that would be tied to individual currencies rather than a basket of assets.