Meta Platform Inc. is all set yet again to make entry in crypto space and plan to launch a stablecoin later in 2025. This would be their second time trying their luck in crypto space. Notable their first time – project Diem, was a high end failure.This time however, they are cautious and have done their homework thoroughly. Their approach reflects maturity and seems more measured. Still, the key question remains the same: Will they be able to do it this time?
Lets have a look back and check the reasons behind the failure Meta faced with Diem. Down (Earlier Libra) was launched in 2019 with an aim to provide a universal currency. This dream was rather short-lived as the project encountered major political and regulatory pushback. The key concerns range from control over national currencies to user privacy and beyond. Its major financial partners like PayPal, Visa and Mastercard made an exit from the project and by early 2022 the project was sold off. Meta quietly exited the stablecoin race, until now.
So what is different this time? To start with Meta has decided to use existing stablecoins rather than launching its own. They plan to leverage pre established assets on blockchain networks like Ethereum. This move reduces the risk connected with a new currency launch.