Cryptocurrency is controversial as a whole. However, what happens when the technology meets one of the most companies in the world? Well, as it turns out, nothing much as Facebook cryptocurrency Diem appears to already be on the cutting room floor.
Reported by Bloomberg, the Zuckerberg-backed cryptocurrency project The Diem Association, aka Libra, is on the way out. As regulators crack down on Facebook's — now Meta — crypto plans, the idea has fizzled out.
Regulators crush Facebook cryptocurrency plans
First announced in 2019, Libra was part of a plan to revolutionise global finance. As part of a “Stablecoin” plan, Facebook and other smaller companies banded together in an attempt to create their own currency.
The Facebook cryptocurrency was quickly criticised by regulatory bodies worldwide, with CEO Mark Zuckerberg having to defend the product in Congress. Years after the proposed idea, the regulators appear to have won.
Facebook's plans appear to have been crushed after the U.S.Federal Reserve targeted Diem banking partner, Silvergate. While Silvergate was supposed to issue the Stablecoin, the Federal Reserve reportedly told the bank that they can't assure allowance of the currency. This means that it wasn't a safe project for the banking group.
This isn't the first sign of trouble for the project. Back in October, Facebook officially launched its digital wallet without support for the Diem cryptocurrency. Additionally, the mind behind the idea — David Marcus — left the company in 2021.
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The Diem Project sells its assets
After the crushing blow to Silvergate, The Diem Association is allegedly weighing a sale of its assets. Bloomberg reports that the people behind the project are talking to investment bankers about selling the IP. The Diem Association is also reportedly looking for new jobs for their engineers.
More regulation for cryptocurrency is likely coming in the future. As companies like China ban the virtual money, and countries like Russia try to, regulation may save the project. However, with countries like North Korea stealing hundreds of millions of cryptocurrency, is it even worth saving?
That's a question for a different time, and a different article. No matter what, I think most people agree that if cryptocurrency continues to exist, it's best if Facebook isn't in charge of it.