Jack Dorsey Criticizes Meta’s Diem Stablecoin Project

Former Twitter CEO Jack Dorsey thinks that while Facebook started the Diem stablecoin project for the right reasons, the platform should focus on Bitcoin rather than trying to create its own currency.

Specifically on February 2, MicroStrategy CEO Michael Saylor interviewed Jack Dorsey at his company’s Bitcoin 2022 conference for business, to share how the organization will implement the integration. How to combine and use Bitcoin (BTC) in the future.

During the discussion, Jack Dorsey did not hesitate to say that Meta’s (formerly Facebook) Diem stablecoin project was a complete failure, having wasted a lot of effort and time. Meta should have focused its efforts on making Bitcoin more accessible to everyone.

I think there are a lot of lessons behind Diem’s ​​breakup. Hopefully they’ve learned a lot from that.”

Dorsey further asserted that the move to help BTC grow in terms of user awareness will also benefit many of Meta’s products, specifically mentioning Facebook Messenger, Instagram, and WhatsApp.

Jack Dorsey’s criticisms of Twitter’s most powerful social media rival are perhaps not surprising. Because, since stepping down as Twitter CEO last November, Dorsey has made it clear he plans to make Bitcoin the focus of the company he runs, Block (formerly known as Square). Block allows users to buy Bitcoin through mobile payment service, cash application.

Jack Dorsey is even ready to uphold his Bitcoin “spirit” when he voiced his “doubt” on Web3, following the previous views of billionaire Elon Musk, causing a lot of controversy from the investor community. time of the event. Recently, the former Twitter CEO also proposed establishing a Bitcoin legal defense fund for developers.

About Facebook’s Cryptocurrency

Facebook’s plans to launch a cryptocurrency were announced back in 2018. In June 2019, Libra, the blueprint for a stablecoin backed by a basket of different cryptocurrencies, went official. The formula is announced with the publication of the white paper.

To manage the payment network, Facebook created the non-profit organization Libra Association. Its members include Visa, Mastercard, PayPal, Uber, Spotify, Andreessen Horowitz, Coinbase as well as other well-known companies. However, the project raised suspicions among regulators, and in July 2019, hearings on the project were held at the US Senate Banking Committee.

In October, it was reported that payment companies Visa, Mastercard, PayPal and Stripe were in no hurry to sign official documents on joining the Libra Association and eventually abandoned the project.

In May 2020, Facebook renamed the Libra wallet from Calibra to Novi and created a new operator for it. In December, the stablecoin project changed its name to Diem stablecoin.

In January 2022, Diem Partnership announced its sale to Silvergate Capital Corporation for $200 million.