In 2019, Facebook announced that it had established the Libra Association, later change its name to the Diem Association. This non-profit organization was head quartered in Geneva, Switzerland and was formed to manage the new cryptocurrency.
It turns out that the association is now trying to sell its assets, citing heavy resistance from regulators to the digital currency created by Facebook company, which is now called Meta.
Amid a regulatory review, Diem founder David Marcus left Meta last year. However, it was resistance from US Federal Reserve’s aimed at one of Diem’s key banking partners, Silvergate Capital Corp., that dealt effort a final blow,” according to Bloomberg.
Meta crypto plans are on hold
One of the first signs that Facebook in 2018 wanted to enter the room of crypto when the giant of social networks announced that he wanted to trail a US dollar backed “Stablecoin” in India, that could be used via Whatsapp. Back then, trust in the social media giant was at an all-time low due to the Cambridge Analytica scandal.
When Libra, now Diem, was first introduced to the world in 2019, the cryptocurrency was described by Facebook as a digital token backed by a basket of currencies. Relying on a number of currencies, including the US dollar, British pound, euro, Swiss franc and Japanese yen, the idea was that Libra would be highly hedged against the risk of currency fluctuations. However, regulators were quick to stop idea from moving forward, leading to a rebranding that never quite stuck or gained traction.
Meta also recently provided another important clue that its Libra project had dusted off. As an October report from The Verge pointed out, Meta finally released its digital wallet, which was announced alongside Libra. However, the company released it with a 3rd-party cryptocurrency called Paxos instead of Libra. Now, according to Bloomberg, Diem’s intellectual property is up for sale and it’s unclear if they will find a buyer for a digital currency that has been significantly halted by regulators.