Diem quits. Meta’s cryptocurrency project is selling its assets to another party under pressure from international financial authorities.
In 2019, Facebook introduced its own crypto currency: Libra. No one was waiting for that. Indeed, authorities worldwide did not like the idea of a company like Facebook rolling out a crypto currency. Financial regulators worldwide launched thorough investigations. Europe also put pressure on the project. Almost immediately, eBay, PayPal, Mastercard, Visa and Stripe dropped the unborn payment network.
Different name, same beast
Just under three years later, Libra is called Diem and Facebook is called Meta, but no one has forgotten what lies behind the respective names. Consequently, pressure from regulators has not subsided. Realizing that the chances are virtually non-existent that it will ever get the green light to launch its own crypto currency, Diem is now officially giving up.
All of Diem’s patents will be disclosed and all Assets will go to Silvergate. That’s a bank with a focus on crypto that has a positive relationship with U.S. financial agencies. Rumors of the sale surfaced last week.
Diem’s founders still believe in the plans for a crypto-based payment network. They hope those do have a chance under Silvergate. “This is a new chapter with perhaps a more acceptable promoter behind the vision,” said former CEO David Marcus.