Publications
Publications
- March 2021
- HBS Case Collection
Facebook's Libra (B): The Privatization of Money?
Abstract
This case addresses the events that took place following the conclusion of the case “Facebook’s Libra (A): The Privatization of Money?” In October 2019, several months after the conclusion of the A case, multiple members of the Libra Association announced that they were leaving the project. Observers speculated that the departures were due to Libra’s inability to meet regulatory scrutiny. Nevertheless, the Libra Association formed a board and formalized its governance structure with 21 founding members. Through the remainder of 2019 and 2020, Libra made significant changes to its product in an attempt to win regulatory approval. It also changed its name to Diem to distance itself from the controversies surrounding the original Libra product. By December 2020, the proposed cryptocurrency was a stablecoin pegged to the U.S. dollar. The Diem Association planned to launch the new currency in early 2021; however, it had yet to secure regulatory approval, even as political skepticism toward the product endured.
Keywords
Blockchain; Cryptocurrency; Accounting; Economics; Money; Governance; Governing and Advisory Boards; Policy; Governance Controls; Innovation and Invention; Innovation Strategy; Technological Innovation; Disruptive Innovation; Information Technology; Digital Platforms; Information Infrastructure; Technology Industry; Europe; Switzerland; United States; California
Citation
Di Maggio, Marco, Ethan Rouen, George Serafeim, and Amy Klopfenstein. "Facebook's Libra (B): The Privatization of Money?" Harvard Business School Supplement 121-055, March 2021.