Facebook has announced its cryptocurrency, Libra, and it went well for some time. But it seems that it is the end of it. The Diem Association, which was set up by Facebook in order to manage the digital coins wants to sell its assets, after it encountered resistance from regulators that don’t agree with the initiative.
The U.S. Federal Reserve has put pressure on Silvergate, which is the banking partner that Diem used for launching the token. Michael Crittenden, a Diem Association spokesperson, told numerous sources that the story had some factual errors. He didn’t make any other comments.
If you come to think of it, if Diem is selling its assets, then it means that this cryptocurrency cannot handle the market. Libra was originally meant to be a digital token that was supposed to be backed by a lot of currencies all over the world, but it seems that regulators didn’t really like the idea. So the company simplified all, and it was rebranded as Diem. And that didn’t seem like a good idea, either. Several high-profile partners pulled out in 2019.
It’s not exactly clear what assets the Diem Association owns, but there are selling their property, and they are trying to find “a new home for the engineers that developed the technology.”
But those were not the only signs that Diem was not going to work. Facebook has recently launched the digital wallet that was built for Diem with another stablecoin – from Paxos. David Marcus, the executive who came up with the idea of Libra left the company last year. He did it because the founding team behind the project left.