#BigTechStablecoin The Prime Example: Meta (formerly Facebook) and Its Stablecoin Ambitions

When discussing high-profile stablecoin projects, Meta’s (previously Facebook’s) Libra—later rebranded as Diem—stands out as the most prominent case.

The Vision – Libra:

In 2019, Facebook unveiled Libra, a global stablecoin backed by a basket of low-volatility assets such as bank deposits and short-term government securities. Managed by an independent consortium, the project aimed to revolutionize digital finance by offering a new global currency to facilitate payments, remittances, and financial inclusion for billions, leveraging Facebook’s enormous global user base.

The Backlash:

The announcement triggered swift and widespread regulatory and political resistance. Authorities across the globe voiced major concerns, including:

Monetary Sovereignty: Fears that a corporate-backed currency could erode national control over monetary policy.

Financial Stability: Risks of systemic disruption if Libra gained traction without robust reserve management.

AML/KYC Compliance: Doubts about Libra's ability to enforce safeguards against illicit financial activity.

Privacy: Existing distrust of Facebook intensified concerns about how user financial data would be handled.

Antitrust and Competition: Warnings that Facebook entering finance could distort competition and consolidate power in Big Tech.

The Evolution – Diem:

Under immense regulatory pressure, the project was scaled back and rebranded as Diem. The vision shifted from a multi-currency global coin to a more modest, single-currency stablecoin (e.g., Diem USD). As scrutiny mounted, many key partners distanced themselves or exited entirely, and the project ultimately failed to launch.