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FX.co ★ Meta-backed cryptocurrency to shut down

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Forex Humor:::2022-02-14T11:49:27

Meta-backed cryptocurrency to shut down

All of Facebook’s attempts to launch its cryptocurrency have been in vain. After sustained opposition in Washington, the company is winding down its long-term stablecoin project.

It became known that the tech behemoth has been exploring the dissolution and sell-off of the intellectual property and other assets owned by the Diem Association, the developer of Facebook’s stablecoin. The US Federal Reserve and other financial watchdogs have made every effort to halt the release of Mark Zuckerberg’s ambitious plan. They made it clear that the project could not move ahead. According to the President's Working Group on Financial Markets (PWG), stablecoins can only be issued by regulated banks if they are meant to be used as a means of payment. Given its vast user clientele, the corporation would have too much economic power.

Mark Zuckerberg announced the launch of Libra, a stablecoin backed by a reserve of real-world assets, in 2019. The developers promised it would make a real breakthrough in the global financial industry. Back then, dozens of world-famous companies, including Visa, MasterCard, Uber, Coinbase, and Spotify, showed support for Facebook’s cryptocurrency.

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