Diem: Facebook Cryptocurrency Is Coming To An End


Diem: It seems that a virtual world designed by Facebook, today Meta, is falling apart: that of cryptocurrencies. Planned more than two years ago by Mark Zuckerberg himself, who even appeared before the US Congress to defend the idea, the pound seems to be falling apart before it actually exists. Bloomberg reported on Tuesday (25) that regulatory pressures made the project go awry.

According to the publication, based on information from people connected to the subject, the Diem Association, an initiative created by Facebook to enable the creation and operation of the digital token, is starting to sell its assets, with the purpose of returning the capital. to its investor members.

According to the informants, who asked to remain anonymous, Bloomberg said that Diem is currently discussing with investment banks how best to dispose of its intellectual property, as well as finding a destination for the engineers who developed the ambitious technology. The idea is to “clean up” any residual value existing in the enterprise.

Who Stopped Mark Zuckerberg’s Cryptocurrency Project?

With the name of the future cryptocurrency changed to diem, the association closed a deal with Silvergate Capital Corp., to issue the crypto, designed to be pegged to the US dollar, the currency commonly used to buy and sell virtual assets. However, the Federal Reserve, the US Central Bank, was not so receptive to the idea and ended up decreeing the end of diem, saying last summer that it would not allow such activity.

Without a green light from the Federal Reserve, Silvergate was practically unable to issue the new asset, as if it did, it would be repressed by the monetary authorities. In other words, without its backing — the US dollar — the diem would be a currency without representation.