- Facebook plans to sell off it’s much ambiguous stablecoin project, the ‘Diem’.
- All assets, including the technical resource engineers and team to be sold off.
- Feds play a major role as hurdles for Diem.
Stablecoin owes to be one of the safest and best crypto businesses in the industry. Being pledged to different assets underlying. In spite of this many prominent tech giants have tried their hands on it. Following up with the trend and one of the biggest trendsetters for most social media platforms, Facebook.
Ever since 2019, the founder of Facebook, Mark Zuckerberg, has been portraying officially regarding their new Stablecoin, also part of the Meta Platforms Inc, to which Facebook has been rebranded. However, many factors act as hurdles for the social media platform, for bringing out the Diem.
The Diem History Recap
The Diem is one of the most ambitious crypto projects taken by the founder of Facebook, Mark Zuckerberg. At the time of 2019, the Stablecoin project was initially known as ‘the Libra’. Facebook, which now comes under the brand name Meta, prompted the Stablecoin project to look forward to a vast market based on financial services through Stablecoins.
Moreover, many other companies joined together to bring about the Facebook platform’s own Stablecoin. Among them, were the Switzerland-based group of companies named Libra Association, and thus the name ‘Libra’. Over the years, as many other partners poured in together for the project, Mark Zuckerberg changed the name to ‘Diem’ from Libra.
At present, Meta, under which Facebook is, owns about three fourth of the capital in the Diem project, whereas the remains are owned by other tech firms. These include Coinbase Global, Uber, Shopify, Thrive Capital, Andreessen Horowitz, and much more.
The Issues From Feds
Soon the project started to take on gears, and as information regarding the Diem Stablecoin circulated, the Federal Reserve started to interfere. The Feds did all they could to stop and hold the project as they feared that with such a Stablecoin from a big tech firm all over the world, it would completely cease all economic power abruptly.
Moreover, as the Diem is directly based upon the U.S Dollar, the Fed’s fears are quite skeptical and maybe obviously valid.
About a year ago, Diem’s lead founder, David Marcus left Meta, and since then Diem started to pull back. Despite all this, Diem partnered together with the Silvergate Bank, to launch Stablecoin officially. However, the plan got shattered as the Feds cornered the Silvergate Bank not to launch Diem.
Taking into account all the above, Mark Zuckerberg finally plans to sell off all the assets of Diem, including the technical engineers behind the project. Once sold, Mark says all the investments from various other investors and firms will be retired back.
