Why Facebook Is Calling It Quits On Crypto?
Facebook spearheaded the formation of a high-profile consortium in 2019 with dreams of creating a payment infrastructure that had the company's Libra cryptocurrency plans at its heart, but those assets have now been sold to a crypto-focused bank for $182 million. And with that, Facebook's crypto ambitions that wanted to cover everything from messaging platforms like WhatsApp to Instagram NFTs and metaverse economy have to an abrupt end. However, given the intense scrutiny and criticism it faced ever since Mark Zuckerberg detailed his crypto vision and onboarded some big names, it is hardly surprising that the plans are shuttering down.
Facebook originally proposed in 2019, saying it sought to create a "financial infrastructure that empowers billions of people." It sounds a little over-the-top on the philanthropic flavor because this is the same company that prioritized unhealthy engagement over teens' mental health, its most vulnerable (and valuable) user demographic. Needless to say, regulators from both sides of the Atlantic ocean were skeptical about the whole idea. Influential voices in Washington raised concern over its impact on financial stability and risk scenarios like money laundering and criminal funding. In 2019, Zuckerberg passionately defended those plans in his testimony before Congress.
Related: Facebook's Troubled Crypto Plans Are On The Verge Of Collapse
Following intense pressure from regulatory bodies, deep-pocket backers like eBay, Visa, PayPal, and MasterCard soon pulled out. A key talking point was that Facebook couldn't solve its existing problems with poor user data management, especially with the Cambridge Analytica scandal exploding in its face just a year ago. On top of that, Facebook was
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