What happened to Libra?

* Ambitious project: Facebook presented Libra as a global digital currency that could revolutionize payments worldwide. The idea was to create a stablecoin backed by a basket of currencies and assets, and to be accessible to billions of people.

* Regulatory concerns: The project generated a great deal of skepticism and concerns from regulators around the world. The main concerns centered on financial stability, consumer protection, money laundering, and data privacy.

* Regulatory pressure: Faced with regulatory pressure, Facebook and its partners had to make numerous changes to the project. The scope of the initiative was reduced and the design of the currency was modified.

* Renaming: To distance itself from the controversy generated by the Libra name, the project was renamed Diem.

* End of the project: Despite efforts to adapt to regulatory demands, the Diem project was eventually abandoned in January 2022. The Libra Association, which was behind the initiative, announced that it would dissolve its operations.

Why did the Libra project fail?

The main reasons for Libra's failure were:

* Regulatory pressure: Lack of regulatory clarity and concerns about systemic risks associated with a global digital currency were insurmountable obstacles.

* Complexity of the project: The project was extremely complex and required the coordination of multiple actors at a global level.

* Conflict of interest: The partnership with Facebook raised questions about the neutrality of the project and the possibility of user data being used for commercial purposes.

What lessons can we learn from Libra?

Libra's failure shows us the importance of regulation in the world of cryptocurrencies and the need for projects of this type to be transparent and subject to public scrutiny.