Zuckerberg’s Diem Project Officially Shuts Down

Zuckerberg’s Diem project officially shuts down as Meta gave up on the stablecoin project after two years of efforts to launch the digital currency so let’s read further in our latest cryptocurrency news.

Meta or previously known as Facebook officially announced the closure of the digital currency project Diem after years of making efforts to move ahead with the initaitive. Announcing the news, Diem COO Stuart Levey confirmed that Meta is selling intellectual property and other assets related to the Diem stablecoin projects to the Silvergate Capital Corporation.

The Diem Association and the subsidiaries will start winding down operations in the upcoming weeks as LEveysaid. The Association however is still confident that the Diem ideals will continue to thrive even after Meta terminated its involvement in the project:

“We remain confident in the potential for a stablecoin operating on a blockchain designed like Diem’s to deliver the benefits that motivated the Diem Association from the beginning. With today’s sale, Silvergate will be well-placed to take this vision forward.
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According to the official announcement by Silvergate, the company will purchase assets of Diem for $182 million and as a part of the integration of the assets into Silvergate’s technology, the company aims to incur about $30 million of costs in 2022. Silvergate Bank which is a subsidiary of Silvergate and META’s stablecoin partner will integrate the payment platform Silvertage Exchange NEtwork with the Diem assets and this new combination will help the bank launch a next-generation global payment system that is way faster and easier to use. The Silvergate CEO alan Lane said:

“We identified a need for a U.S. dollar-backed stablecoin that is regulated and highly scalable to further enable them to move money without barriers. It remains our intention to satisfy that need by launching a stablecoin in 2022.”

Zuckerberg’s Diem project is officially closed now after it spends years developing. It was previously known as Libra and included a foundation of top global companies such as PayPal, eBay, Visa, and Mastercard, and the project recieved a lot of global regulatory pushback with the financial authorities expressing some major concerns over the tech giants that are taking over too much of the financial power.

Despite the major regulatory pressure, Meta tried to roll out some of the services in the US with the WhatsApp messenger testing payments with the Novi wallet in December 2021. CEO Levey stated:

“In the United States, a senior regulator informed us that Diem was the best-designed stablecoin project the U.S. government had seen.”

While the Diem Association is shutting down its project, some of the original members are moving forward with their own stablecoin plans while Paypal confirmed that it was exploring a new stablecoin.