OKX Blockchain 60 Lessons | Episode 51: 2019 — Giants Enter the Ring: Facebook's Cryptocurrency Dream

Previously, we discussed how in 2018, blockchain was hyped to an unsustainable peak, triggering a dramatic de-bubble process that plunged the entire industry into a winter. However, danger and opportunity coexist — this cyclical downturn happened to provide the perfect window for international giants to enter the market.

In February 2019, Wall Street financial behemoth JPMorgan Chase sounded the official horn for international giants to enter the blockchain space. Shortly after, giants such as Goldman Sachs, UBS, Citigroup, and Microsoft all announced their entry into blockchain . Among them, the most influential was internet social media giant Facebook.

On June 18, 2019, Facebook officially announced that it would issue its own cryptocurrency — Libra — and published the "Libra Stablecoin Whitepaper." According to the whitepaper, Libra would utilize blockchain technology and operate on the Libra Blockchain, with the goal of becoming the global financial infrastructure, scaling to billions of accounts and supporting high trading throughput.

In addition, Libra was not backed by a single fiat currency for a 1:1 exchange. Instead, Facebook would hold reserves of multiple fiat currencies in a basket, weighted proportionally, to maintain a stable exchange rate.

Put simply, Facebook intended to issue a cryptocurrency that could actually function as a means of payment. To achieve this goal, Facebook partnered with 29 institutions including Uber, eBay, PayPal, Coinbase, and Xapo, spanning sectors such as media, communications, e-commerce, transportation, music, travel, payment, and blockchain, forming the Libra Association to provide diverse use cases. Users could use Libra through Facebook's various social products to take rides, shop, invest, and more — essentially a cross-border version of WeChat Pay.

At that time, Facebook commanded 2.7 billion global users. Had the project succeeded, it would have instantly become the largest application in the blockchain space. However, the negative implications would include undermining each country's fiat currency sovereignty and creating a "financial state within a state" controlled by Facebook.

Therefore, in July 2019, the U.S. House of Representatives issued a formal request to halt the Libra project. That same month, both chambers of the U.S. Congress, citing financial regulatory concerns, held a dedicated hearing on Libra. During the proceedings, lawmakers inquired about how Libra's regulatory jurisdiction should be defined, how user data privacy should be protected, details of its business model, and whether it constituted a monopoly. They concluded that the Libra project posed risks in terms of regulation, security, and monopoly. Subsequently, European countries followed suit, led by Germany and France,抵制ing Libra and demanding Facebook make significant changes.

Ultimately, in October 2019, with Facebook delaying the launch and a quarter of its members withdrawing from the Libra Association, Libra came to a quiet end.

That said, while Facebook failed, other giants achieved great success with their blockchain applications that year, fully grounding the blockchain industry and shifting it from the virtual to the real. As for what specific approaches other giants took — let me keep you in suspense. We'll cover that in the next lesson~

Special thanks to Professor Liu Changyong for his assistance and guidance on this episode's content. Weibo: @昌用老师

"OKX Blockchain 60 Lessons" is a blockchain educational animation series jointly produced by OKX and Sina Tech. Designed for users with zero blockchain background, it uses articles, animated videos, and other formats to vividly explain blockchain concepts across five major sections and 60 key points — from concepts and technology to applications. The content for this episode was reviewed and guided by Dr. Liu Changyong, PhD in Economics from Peking University.

Disclaimer

This article may contain product-related content not applicable to your region. This article is provided for general informational purposes only and makes no warranty as to accuracy, completeness, or reliability. The views expressed herein are those of the author(s) and do not necessarily reflect the opinions of OKX. This article is not intended to provide any advice, including but not limited to: (i) investment advice or investment recommendations; (ii) offers or solicitations to buy, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. Holdings in digital assets (including stablecoins) involve a high degree of risk and are subject to significant price volatility — they may even become worthless. You should carefully consider whether trading or holding digital assets is appropriate for you given your financial situation. Please consult your legal/tax/investment professional regarding questions specific to your circumstances. Any information contained herein (including market data and statistics, if applicable) is provided for general reference only. Although every reasonable precaution was taken in preparing such data and charts, we assume no liability for any factual errors or omissions expressed herein. © 2025 OKX. This article may be reproduced or distributed in its entirety, or excerpts of 100 words or less may be used, provided that such use is non-commercial. Any reproduction or distribution of the full article must prominently state: "This article is copyrighted © 2025 OKX, used with permission." Permitted excerpts must cite the article title and include the source, e.g., "Article Title, [Author Name (if applicable)], © 2025 OKX." Some content may have been generated or assisted by artificial intelligence (AI) tools. Derivative works and other uses of this article are not permitted.

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