Meta-backed cryptocurrency initiative, the Diem Association, is reportedly looking at selling its assets in order to return capital to investors. Also, the project is in talks with investment bankers to determine how to best sell its intellectual property and assist developers in finding new work.
Diem might sell its assets
Diem was controversial in its short existence. It was founded in 2019 under the name Libra. It aimed to revolutionize global monetary services through the launch of a stablecoin that is tied to the American Dollar. Meta Platforms, formerly known as Facebook, is the project’s backer.
Meta partnered with many other companies to make the initiative more manageable. However, the alliance was not strong enough for regulatory scrutiny to protect the project.
Although some partners pulled out of the collaboration, Mark Zuckerberg (Cofounder and CEO of Meta), defended Libra’s idea at a Congressional hearing. The project was still a problem for the watchdogs despite this support. It changed its name from Diem to discredit the original concept.
Bloomberg reports that the Diem Association wants to sell its assets in order to return funds to investors. Meta holds about a third, with Union Square Ventures, Ribbit Capital and Temasek Holdings Pte being other notable members.
In November 2013, Senator Sherrod Brown, head of the US Senate Banking Committee, called on stablecoin platform and issuers to reveal their operations.
All across the USA, Diem Secured Licences
According to recent reports, Meta’s stablecoin payments system was approved last year for operation in almost all 50 states. David Marcus, a former board member of Meta’s project, stated that stablecoins could solve many problems in the international financial system. He supported Meta’s idea to support the Diem Association.
“I believe that if ever there was a chance to create an interoperable protocol for money online and change the game for people, businesses, and the world, it’s now. We can all participate as Diem Association members and in other ways. I don’t want to see us waste our chance.
Marcus concluded that Novi, a digital wallet developed by Meta, is “ready for market” and adhered to all regulations.
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