Meta admits that the Diem Association project has failed

A very large and ambitious crypto project funded by the Meta Corporation, Diem, has collapsed. In more detail, the Diem Association confirmed just yesterday that it was selling its assets to Silvergate, a bank that was previously a partner in the group, and that it would “begin the liquidation process.” And by the way, it is important to recall that the authoritative publication Bloomberg reported on negotiations regarding a possible sale last week.

A spokesman for the Diem Association at the time stated that the publication’s report contained unspecified “factual errors”. However, as we can now see, in fact, Bloomberg’s information from the very beginning was reliable, way and not complete. Either way, now that the Diem Association asset sale is official, it marks the end of more than a two-year effort by the corporation to launch its own stablecoin, vehemently championed by Mark Zuckerberg.

And despite the fact that the Diem Association was a separate organization from Meta, most of its funding still came directly from the aforementioned giant. “I believe this is something that needs to be built, but I understand that I am not the ideal manager for this right now,” Zuckerberg told Congress in 2019 during one of the hearings on the company’s cryptocurrency ambitions. In any case, it is also reported that the group formerly known as the Libra Association hoped to launch their stablecoin back in January last year. However, the company, as you may know, has repeatedly faced a variety of obstacles from legislators and regulators around the world, and the project has been repeatedly delayed and scaled back. Among officials’ top concerns in this regard was that Diem could potentially be used for money laundering and other illegal purposes.

Either way, in a statement, Stewart Levy, CEO of Diem, blamed U.S. regulators for Diem’s ​​demise, and also defended the organization’s risk-mitigation work with industry-leading controls to protect consumers and fight financial crime.” While we received positive meaningful feedback on the design of the network, it was clear from our dialogue with federal regulators that the project could not move forward. As a result, the best way forward was to sell the assets of Diem Group, which we did today together with Silvergate,” Stuart Levy commented on the news. So if Meta still has some ambitions in the field of cryptocurrencies, then obviously they will not be realized soon.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *