During the international conference MicroStrategy World, former head of Twitter Jack Dorsey criticized the failed cryptocurrency project Diem from Meta. According to him, Diem is a waste of time and effort, and from the very beginning, the cryptocurrency was doomed to failure. Dorsey pointed out that instead of working on the project, the company should have invested in promoting Bitcoin to make it more accessible to people around the world. This would also be a plus for native Meta platforms like Messenger, Instagram and WhatsApp.
Dorsey noted that Meta's approach to cryptocurrency development was not open enough. The company should use open protocols instead of its own closed system and not get hung up on constantly trying to involve people in the Facebook ecosystem. Dorsey hopes that the company learned a lot from working on Diem and drew appropriate conclusions.
Diem was originally going to be called Libra and would be released in the first half of 2020. Instead, during this period, Facebook (now Meta) rebranded and changed the name of Libra to Diem, in addition to renaming the digital wallet from Calibra to Novi.
Immediately after the announcement of work on Diem, Facebook was criticized by financial regulators in the United States and other countries. They called for a suspension of development and testing in order to carefully assess the potential benefits and risks of Diem, due to which the company was unable to complete the project by the specified deadlines. In 2021, the US Senate demanded that testing of Novi and Diem be stopped due to lack of trust in Facebook. The Senate's demand is directly related to the scandal over leaked Facebook internal documents. He pointed out that the information from these documents confirms the inability of Facebook to manage the cryptocurrency payment system and digital currency in general.
At the end of January of this year, internal Bloomberg sources indicated that Diem could not withstand the pressure of regulators to find an issuer to issue cryptocurrency. In addition, major partners such as MasterCard, Visa, Vodafone and PayPal withdrew from the project due to criticism. Diem Association began to look for ways to sell assets to pay off debt to investors. A few days later, the rumors were confirmed. Diem will sell its assets for $182 million to Silvergate Bank, which was supposed to be the issuer of Diem USD.