The once ambitious but now declining Facebook-backed digital currency project known as Diem has disappeared and its assets have been sold to bank holding company Silvergate Capital.
The Silvergate and Libra Association announced the sale on Tuesday. Meta, which owns Facebook, didn’t immediately respond to a message asking for comment.
“Dialogues with federal regulators have revealed that the project cannot proceed. As a result, the best way to move forward was to sell the Diem Group’s assets,” Diem said. And the project will be finished in the next few weeks.
It was clear for some time that Diem, first named Libra, was fighting a difficult battle with regulators. Meta has gradually moved away from the project.
Last May, the Diem Association, which was then attended by Facebook and 25 other companies, partnered with Silvergate Capital Corp. to issue “Stablecoin” backed by US dollars. Stablecoin is a digital currency backed by real-world assets such as national currencies and other commodities.
Facebook announced the Libra project in 2019. At that time, it was envisioned as stablecoin based on a basket of national currencies that could serve as the global currency for people without bank accounts around the world.
However, amid regulatory and commercial backlash, efforts have been significantly reduced. Company name changed in December 2020.
End: Facebook-backed digital currency Diem sold to banks | WGN Radio 720
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