The highly controversial digital currency project that was once defended by Mark Zukerberg in front of the Congress is unraveling after some regulatory pressure. The Mark Zukerberg Libra project by the Diem Association which is a digital currency initiative that was once called Libra backed by the Meta platform, then Facebook is weighing a sale of its assets as a way to return the investor’s capital.
Diem is presently in discussion with a few investment bankers about how to sell its intellectual property and develop a new space for the engineers who created the blockchain technology, cashing out the remaining value in its once ambitious Diem coin venture once known as Facebook Libra.
Mark Zuckerberg Libra Project: How It All Began?
In 2019, Meta’s Facebook initially revealed the idea of its stable cryptocurrency or stablecoin that was aimed at revolutionizing global financial services; they did this in collaboration with numerous other entities. This was the Facebook cryptocurrency launch date. But the association was not enough to safeguard the project from global regulatory scrutiny. After Meta CEO was called to testify on the Mark Zuckerberg Libra project, some of the partners abandoned the project and it shifted its name to Diem. The ambition of Diem scaled back to its founder, David <arcus who left Meta last year. The consortium struck an arrangement with Silvergate Capital Corp. to offer Diem, but hindrances from the US Federal Reserve could not make it happen.
Diem stated in May that an affiliate of the firm, Silvergate Bank was chosen to be the issuer of the Diem USD stablecoin, which is a form of digital currency that is backed by the US Dollars that is primarily used to purchase and sell cryptos. After a long back and forth among the regulators and advocates of Diem, Fed officials finally ordered Silvergate that the agency was uncomfortable with the idea and could not assure the bank that it would enable the activity.
Without a green signal from the regulators of the bank, Silvergate was unable to issue the latest asset with the assurance that Fed would not crackdown, and so the efforts of Diem had no coins. A spokesperson of the Fed led down to make any comments on the talks of the agency with the advocate of Diem. The Diem association refused to comment as well and there was no immediate response from Meta as well on this issue.
Present Condition Of The Mark Zuckerberg Libra Project
The ambitious Mark Zuckerberg Libra project that he planned to create on its own is presently falling apart. Despite increasing pressure from regulators, this controversial crypto project, which was once defended by Meta CEO in front of the congress, is reportedly for sale now. As per some reports, The Diem Association that is backed by Meta is presently planning to sell off its assets for returning the capital to its investor members. This project was once witnessed as an important part of the metaverse idea put forth by Zukerberg.
As per a media house, the Diem Association that oversees the development of the Diem cryptocurrency which is a digital currency initiative that was once called Libra coins backed by the Meta platform, then Facebook is weighing a sale of its assets as a way to return the investor’s capital. According to sources,
“The company is trying to find a new destination for the engineers who developed the technology. However, both the Diem Association and Facebook’s parent company, Meta is yet to confirm the development. The project, which was seen as one of the most ambitious ones in the cryptocurrency market, has been running into trouble with the regulators on a constant basis. The continuous fight with Congress will only make it tougher for the company to find a buyer and gain a sensible value for the project.”
Conclusion
The ambitious Mark Zuckerberg Libra project that had plans to construct his own digital currency is now falling apart, amidst increasing pressure from regulators. The Diem Association, which ignores the development of the Diem cryptocurrency, is thinking about a sale of its assets, for returning the capital to the investors.
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