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| Zuckerberg's dream of launching a cryptocurrency is officially over |
Mark Zuckerberg's dream of launching a cryptocurrency ended after several name changes, congressional hearings, and the departure of several senior employees. The meta-based cryptocurrency called Diem has been discontinued.
Diem confirmed that he sold nearly $200 million in assets to Silvergate, a crypto-focused bank he worked with last year to launch a dollar-pegged stablecoin.
"We made the decision to sell after our discussions with federal authorities made it clear that the project could not continue," Diem CEO Stuart Levy said in a statement. The Federal Reserve is known to be one of Diem's main opponents.
Selling Diem's fortune marks the end of a plan that was doomed from the start. The application created by Facebook will be the primary means of using the token.
Although Facebook created the Libra Association to join other companies in controlling the coin, there are concerns that Libra could make the controversial tech giant even stronger.
In addition, months after the group was announced, members of the Libra Association began withdrawing.
Zuckerberg's Ambitious Attempt to Bring Cryptocurrency to the Masses Failed
Libra emerged when stablecoins to maintain a certain price to encourage regular trading was a relatively new idea and had not been closely scrutinized by regulators.
Due to the size of the stablecoin market since 2019, governments around the world have begun to pay attention and consider legislation.
The US Treasury said in November that it believes stablecoins like banks should be regulated. Barron recently reported that the White House plans to require federal agencies to regulate cryptocurrency as part of national security.
With the Meta's relationship with Diem ending, there is a chance for Silvergate or other players to revive the project. Although Mita's reputation affected her. But Diem is more transparent and regulated than many existing stablecoins.
Almost everyone on the Libra founding team chose not to use metadata. The probability of Diem returning with the same support is slim.
It was clear that some of Libra's original CEOs were saddened by the way the project was being politicized. David Marcus, the former CEO of Facebook, who founded Libra and left late last year, tweeted about its demise.
Diem's benefit appears to be that Meta has promised not to force its crypto patents to other crypto developers.