Meta’s Cryptocurrency Project Diem Could Go for Sale (Report)
The Diem Association – a cryptocurrency initiative backed by Meta – is reportedly considering the sale of its assets to return capital to its investors. The project is also in discussions with investment bankers about how best to sell its intellectual property and help the developers find new places to work.
Diem Might Sell Its Assets
During its relatively short time of existence, Diem has sparked some controversy. Established in 2019 under the name Libra, it aimed at revolutionizing global monetary services by launching a stablecoin pegged to the American dollar. The project’s backer is Meta Platforms (formerly known as Facebook).
The initiative was a rather complicated one, and to have a better chance of success, Meta partnered with dozens of other companies. The alliance, though, was not strong enough to protect the project from regulatory scrutiny.
While some of the partners abandoned the collaboration, Mark Zuckerberg (Co-Founder and CEO of Meta) defended the idea behind Libra at a Congressional hearing. Despite this support, the project remained an issue for the watchdogs. As a result, it changed its name to Diem to distance itself from the original concept.
According to a recent report by Bloomberg, the Diem Association is seeking to sell its assets to return funds to its investors. Meta owns about a third of the venture, while other prominent association members include Andreessen Horowitz, Ribbit Capital, Union Square Ventures, and Temasek Holdings Pte.
In November last year, the head of the US Senate Banking Committee – Senator Sherrod Brown – called upon stablecoin issuers and platforms to disclose their operations.
Diem Secured Licenses Across The USA
Despite the recent reports, last year, Meta’s stablecoin payment system gained an approval to operate in nearly all states in the USA. Back then, David Marcus – the former board member of the project – opined that stablecoins could fix several problems within the current international financial network. Thus, he backed up Meta’s concept to support the Diem Association:
“I strongly believe if there was ever a chance to create an open, interoperable protocol for money on the internet and truly change the game for people and businesses around the world, it is now. The fact that we’re participating, as members of the Diem Association, and in other ways, can help bring more companies around a standard, and I don’t want us to waste our shot.”
Subsequently, Marcus concluded that Novi – a digital wallet created by Meta – is “ready to come to market” while strictly abiding by the regulators’ rules.
