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San Francisco: Faced with regulatory obstacles, Meta CEO Mark Zuckerberg’s cryptocurrency dream has come to an end, as the business has sold its digital coin, Diem, to Silvergate, a crypto-focused bank, for about $200 million.
The cryptocurrency initiative, which began as Libra and was eventually renamed the Diem Association, had regulatory opposition, with the US Federal Reserve being a major opponent.
“Despite providing us with positive substantive comments on the network’s design, our discussions with federal regulators revealed that the project could not proceed.” As a result, the best course of action was to sell the Diem Group’s assets, which we did today to Silvergate, stated Stuart Levey, CEO of Diem Networks.
“We remain optimistic about the possibility for a stablecoin based on a blockchain like Diem’s to deliver the benefits that drove the Diem Association from the start,” he said late Monday in a statement.
The Diem Association and its subsidiaries aim to begin the process of winding down in the following weeks.
In December 2020, the Libra Association decided to change its name to Diem Association in order to strengthen its organizational independence.
Diem Networks, a subsidiary of the Diem Association (Diem meaning day in Latin), was in charge of the payment system.
During a summit in Geneva in October 2019, Facebook and 20 partner organizations formally joined the digital currency project.
In an attempt to win over authorities, the organization said that their cryptocurrency will offer stable coins backed by only one country’s currency, implying that some coins will have the same value as a dollar or a euro.
PayPal, Mastercard, Visa, Mercado Pago, eBay, Stripe, Booking Holdings, and Vodafone, among others, withdrew from the Libra project because of privacy concerns.
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