Facebook’s cryptocurrency failure came after internal conflict and regulatory pushback

Diem was effectively doomed from the start, the people familiar with the effort said. It was announced in 2019 with great fanfare under the name Libra. Foreign governments, members of Congress and regulators expressed fears about the project immediately, saying Facebook wasn’t prepared to address concerns about money laundering, consumer protection and other potential financial risks. Two years later, after a rebranding to Diem and an overhaul of the project’s design so that it would be pegged to the U.S. dollar to create more stability, it faced even greater resistance from regulators, who said the company acted arrogantly, according to one of the people.

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