**The Rise and Fall of Facebook’s Libra**
*New Cryptocurrency Makes Waves*
By June 2019, there were over 2,400 cryptocurrencies in circulation, most of which were virtually worthless and unknown to the public. Therefore, when a new cryptocurrency called Libra was announced in a white paper on June 18, it seemed like just another addition to the long list of obscure digital currencies.
However, Libra quickly captured the attention of the public. The project made bold claims, promising to work more efficiently than existing payment technologies and to target the billions of unbanked individuals around the world, aiming to revolutionize the global financial system.
*Facebook’s Involvement Sparks Controversy*
What set Libra apart from other cryptocurrencies was its main backer – Facebook. Fresh off a series of data privacy scandals, the social media giant emerged as the lead partner in the creation of a new global currency. Alongside a coalition of major tech, finance, and commerce companies, Facebook promised to roll out the initiative in early 2020.
*Controversy and Backlash*
After its announcement, Libra faced scrutiny from various parties. Cryptocurrency enthusiasts argued that it did not adhere to the fundamental principles of decentralization. Economists warned of the potential impact on national monetary policies, while lawmakers and regulators around the world threatened to launch investigations and take action against the currency.
By early October, several major companies, including PayPal, eBay, Visa, Mastercard, Stripe, and Mercado Pago, withdrew from the Libra Association, leaving only one payments partner, PayU. The backing out of these companies further fueled the growing skepticism surrounding Libra.
*Mark Zuckerberg Faces Congress*
The skepticism reached its peak when Facebook CEO Mark Zuckerberg was summoned to testify before the US Congress on October 23. Congresswoman Maxine Waters called for a moratorium on Facebook’s development of Libra, suggesting that the company focus on addressing its existing issues rather than proceeding with the cryptocurrency project.
In the face of mounting opposition and backlash from regulators, the future of Libra became increasingly uncertain. The promising new global currency had faced significant setbacks within just a few months of its announcement, raising doubts about its viability and potential to revolutionize the global financial system.
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