Though Facebook launched Diem for "the right reasons," Dorsey believes it should have instead chosen an open-ended system like Bitcoin instead of working to develop its own currency.
Meta's unsuccessful cryptocurrency venture, Diem, was "wasted effort and time," according to Twitter founder Jack Dorsey, who thinks the company should have concentrated its resources on "making Bitcoin more accessible for everyone."
On Tuesday, MicroStrategy CEO Michael Saylor spoke with Dorsey about how companies could incorporate and use Bitcoin (BTC) at his company's Bitcoin For Corporations 2022 conference.
Although Facebook developed Diem for "the right reasons," Dorsey believes it should have instead chosen an open-ended mechanism like Bitcoin instead of trying to develop its own currency.
“This whole thing with Libra and then Diem, I think there’s a ton of lessons there,” Dorsey told Saylor. “Hopefully, they learned a lot, but I think there was a lot of wasted effort and time.”
This should be unsurprising that he condemns Twitter's more famous and effective social media equivalent. Dorsey has made it evident that Bitcoin will be the priority of his new firm, Block, since resigning as CEO of Twitter in November last year (formerly known as Square). Block makes it possible for users to buy Bitcoin via the Cash App mobile payment service.
“Those two or three years or however long it’s been could’ve been spent making Bitcoin more accessible for more people around the world.”
Dorsey went on to say that making BTC more reachable would assist several of Meta's products, citing Facebook Messenger, Instagram, and WhatsApp as references
“We have this open network right now. And it’s usable. It’s not accessible to everyone, but it’s usable. The easier we make it, the faster we make it, the more approachable we make it, it’s going to better everything, including everything Facebook intended to do with Libra.”.
The white paper for Libra, Facebook's much-awaited crypto-based financial infrastructure venture, was launched in 2019 (now labelled as Meta Platforms). However, the project was compelled to be renamed to Diem in December 2020 due to several regulatory obstacles and poor PR, and it eventually came to an early end.
On Monday, Meta stated that it would sell Diem's intellectual property and other assets to Silvergate Capital Corporation for a total of $182 million, with the assets being handed over on Tuesday.
The Bitcoin Lightning Network was added into the Cash App on January 12, enabling quicker and efficient BTC transfers through the layer-2 payments protocol.