Mark Zuckerberg’s Diem stablecoin project is officially shutting down

Meta, formerly known as Facebook, has officially announced the completion of its digital currency project Diem after years of major efforts to get the initiative off the ground.

The announcement of the news on Monday, CEO of Diem, Stuart Levey confirmed that Meta is selling the intellectual property and other assets related to the stablecoin project Diem. to his company Silvergate Capital.

The Diem Association and its affiliates will begin to scale back their activities “In the next weeks”, Levey said. However, the federation remains confident that Diem’s ​​ideals will continue to thrive even after Meta officially ends its involvement in the project, the CEO noted:

“We remain confident that a stablecoin operating on a blockchain designed like Diem’s ​​will deliver the benefits that motivated the Diem Association from the start.” With today’s sale, Silvergate is well positioned to to advance that vision.”

Mark Zuckerberg’s Diem stablecoin project is officially shutting down
Mark Zuckerberg’s Diem stablecoin project is officially shutting down

According to an official Silvergate announcement The company will purchase assets from Diem for a total value of US$182 million. “As part of the integration of the acquired assets into Silvergate’s existing technology, Silvergate anticipates approximately $30 million in additional costs in 2022,” the company said.

Specific, silvergate bank, Silvergate subsidiary and meta stablecoin partner, will integrate its payment platform, the Silvergate Exchange Network, with Diem’s ​​assets. The new combination will help the bank get started “Next-generation global payment system that’s faster, easier to use and more cost-effective than existing solutions,” indicates the ad.

“We identified a need for a US Dollar-backed stablecoin that is regulated and highly scalable so they can move funds without impediments. It remains our intention to meet that need by launching a stablecoin in 2022.” said Silvergate CEO Alan Lane.

Back in 2019, Meta officially unveiled its digital currency project, originally called Libra, which included a base of top-tier global companies like Mastercard, PayPal, Visa, eBay, and others. The project faced massive regulatory opposition around the world, as financial authorities expressed deep concerns that tech giants could potentially usurp too much financial power.

Despite heavy regulatory pressure, Meta attempted to deploy some of its services in the United States WhatsApp is testing payments with Metas Novi Wallet in December 2021.

“In the US, we were told by a top regulator that Diem was the best designed stablecoin project the US government had ever seen.” said CEO Levey.

As the Diem Association wraps up its stablecoin, some of its original members are pushing ahead with their own stablecoin plans. In January, PayPal officially confirmed that it was “exploring a stablecoin” that could be called PayPal Coin.

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