09.12.2021

Facebook Drops Libra and Will Integrate USDC or PAX Stablecoins

According to The Block, Facebook is discussing options for cooperation with the issuers of popular stablecoins Circle and Paxos. Circle is the operator of USDC and is part of the Center consortium, which is the issuer of this stablecoin.

Paxos has released other popular stablecoins such as Paxos Standard (PAX), Binance USD (BUSD), and Paxos Gold (PAXG).

Both companies are taking active steps to expand their activities, and also provide detailed reporting on the work done. So, Paxos recently announced a partnership with Bank of America and the Founders Fund, and Circle raised $ 440 million and announced plans to enter the stock market.

Facebook is in talks with popular stablecoin issuers Circle and Paxos.
Apparently, Facebook has finally abandoned the development of Libra and will bet on working with existing stablecoins.

According to The Block, there is reason to believe that it is precisely because of the desire to attract such a large partner as Facebook that companies are publicly lashing out at each other.

“Perhaps this is why Paxos and Circle have been publicly lashing out at each other lately. They want to attract such large accounts, ”writes The Block journalist Frank Chaparro.

At the same time, Facebook, apparently, faced another dissatisfaction from regulators, so it was forced to stop developing the Novi Financial division and focus on partnerships with existing stablecoin issuers.

In 2019, Facebook announced the development of its own stablecoin Libra (later renamed Diem), which was supposed to be backed by a whole basket of currencies. In parallel with this, Telegram began developing its own blockchain project TON. Many representatives of the cryptoindustry were then encouraged by the fact that such giants began to pay attention to promising technology. However, the reality turned out to be much sadder.

At first, the SEC banned Telegram from launching its product, in the meantime, regulators in many countries began to express clear dissatisfaction with the Facebook initiative. Initially, the company acquired such world-famous partners as Booking, eBay, Mastercard, PayPal and Visa, but soon many of them refused to cooperate due to the regulatory prosecution of Facebook.

In May 2020, Facebook announced the creation of a Novi Financial division to develop a digital wallet for Libra. However, in all likelihood, this initiative will also be closed due to pressure from the authorities.

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