Libra, Diem shut down by Facebook
Libra was a cryptocurrency backed by giant tech company Facebook, now known as Meta. The coin was officially cancelled in January 2022, but had gone a name change to Diem, following legal challenges surrounding its original name. Meta cited regulatory and industry challenges for shutting down the cryptocurrency, which they were hoping would become a popular way to transfer funds around the world.
What did Libra cryptocurrency do?
There is currently no online casinos accepting Libra payments in 2019. A Facebook-backed cryptocurrency is due to be launched under the name Libra in 2020 but we are yet to hear how the new payment technology will fit into the gambling landscape.
Libra online casinos are likely to be exactly like regular online casinos, except they will have Libra as a deposit option. With Facebook having shareholders and directors to answer to, we can only imagine that Libra online gambling sites will be available only in countries with regulation surrounding gambling.
What do we know about Libra casinos so far?
Facebook announced it was launching its own cryptocurrency during the week ending June 23, 2019. At the same time it announced a series of partners in the venture including credit card companies, capital firms and other tech companies.
The first phase of the Libra rollout will see Facebook Messenger and WhatsApp integrated with the digital currency, allowing you to transfer traditional currencies free and instantly.
Down the track Facebook has indicated it is hoping Libra will grow and become a common form of payment, which is likely when we will see it become used in gambling. The company is also planning on rolling out further financial services on top of the blockchain-based Libra network.
Gambling laws around Libra casinos
Facebook is already facing immense backlash since the announcement of Libra, with many people questioning the tech giant’s suitability to run a payment processor, following the many gaffs about privacy the company has made.
Facebook & gambling laws
Facebook for a time was a free-for-all when it came to gambling advertising, but this was cleaned up in conjunction with the regulators of various countries.
Now if you want to advertise gambling on Facebook you have to prove that you are a registered business and have the appropriate licensing.
We feel as though the finance department at Facebook would be well aware of the potential windfall gambling deposits with Libra could create.
Calibra Online Services
The social media giant Facebook is also planning on launching a subsidiary company which will continue to grow the ecosystem around Libra.
Calibra is likely to be the part of the business model that allows Facebook to profit from its “free” cryptocurrency.
Libra & Facebook online casinos verdict
While Libra is not yet launched, and won’t be until the first half of 2020, we feel as though Facebook is likely to get this casino payment processor right.
Reports are suggesting Facebook has poured more money into the Libra cryptocurrency than it has into any previous project, and it is claiming it has stamped out many of the problems bitcoin has encountered.
The fact Libra’s price will not vary like bitcoin’s, and the early indication is there will be no fees for money transfers, means it could potentially become a heavily used deposit method at online gambling sites.
The World Gambling List will update this page if Meta revives their failed cryptocurrency project at any point.