Facebook's crypto venture called Diem might be well on the way out, according to recent reports.
The Verge says that Diem coin might no longer see the light of day after regulators started pushing the initiative back. It was reportedly the US Federal Reserve which is putting Diem out of its misery, due to its pressure on the cryptocurrency's banking partner, Silvergate.
Diem brokered a deal with Silvergate last year to launch the token, though there were rumors that the federal authorities "threatened" the former. This reportedly caused the project to be put on hold.
The original report comes from Bloomberg, which also stated that investment bankers are now trying to find a way to sell its IP. Furthermore, they're also looking to "find a new home" for the people who worked on and developed the technology in the first place.
Diem's first reveal back in 2019 came with Meta's desire to "revolutionize" global financial services. It was part of their initiative called stable digital currencies, or stable coins, which was done in collaboration with several other companies.
Also called Libra, the Facebook crypto project was also originally intended to be a token backed by a variety of global currencies, as per the original Verge report. However, it soon became clear that regulators weren't a fan of the idea, which forced Libra to be rebranded into Diem.
Former Twitter CEO and now crypto mogul Jack Dorsey reacted to the reports, tweeting this with the massage "Carpe Diem":
carpe diem https://t.co/QTN2JzehUZ
— jack (@jack) January 26, 2022
If the sales of Diem's assets do push through, it will be the final blow to Mark Zuckerberg's stablecoin plans, reports Engadget. This is after the project has already suffered multiple major setbacks from regulators and even US lawmakers, as well as high-profile partners pulling out of the venture.
Facebook Crypto Project: What Is Diem, Exactly?
As a stablecoin, its biggest core feature is that it is backed by actual money reserves, which includes short-term government securities and cash, according to GoBankingRates. This theoretically enables it to maintain a stable price by connecting its value to the aforementioned real-world assets.
A stablecoin backed by Meta/Facebook would have seen immense success in terms of overall adoption, as well as investment appeal. Other big-name cryptocurrencies like Bitcoin or Ethereum have always been extremely volatile, with their prices going up and down wildly due to a wide array of external factors.
Other Stablecoins To Invest In
If you're explicitly looking to invest in stablecoins soon, then maybe you need to watch out for PayPal's very own.
The widely popular online payments service is rumored to be launching its own stablecoin, and people say that the evidence is found in the PayPal iPhone app. They're also saying that the cryptocurrency's launch is evident based on CEO Bill Harris' recent comments about Bitcoin.
Harris has recently gone on record saying Bitcoin is "a scam," while also comparing it to gambling.
This article is owned by Tech Times
Written by RJ Pierce
