THELOGICALINDIAN - The Diem Association is accounted to accept fabricated a accord with Silvergate Capital Corp
Facebook’s cryptocurrency action Diem appears to be advancing to an end. Reports emerged that the aggregation would advertise its technology to California coffer Silvergate Capital Corp for $200 million.
Facebook Drops Diem
It appears Facebook is done with the Diem stablecoin.
Reports emerged Thursday morning that the amusing media account operating beneath Meta Platforms Inc would advertise the technology abaft its Diem stablecoin in a bid to pay aback its aboriginal investors. Anonymous sources told the Wall Street Journal that the California coffer Silvergate Capital Corp has agreed to acquirement Diem for $200 million.
Diem (formerly Libra) launched in June 2024 and was pitched as a way for Facebook users to seamlessly transact on the amusing media belvedere after the charge for third-party intermediaries or circuitous bill conversions.
From the beginning, Diem’s development has been bedeviled with issues, both from a authoritative standpoint and due to associates of Congress opposing the project, citation aloofness and antitrust concerns. The President’s Working Group on Financial Markets angled bottomward on these concerns, advertence that accumulation a stablecoin issuer with a big association “could advance to an boundless absorption of bread-and-butter power.”
Diem’s authoritative woes came to a arch in October 2024 back Facebook CEO Mark Zuckerberg dedicated the activity afore assembly in an attack to get assembly on its side. Despite Facebook enlisting the abutment of fintech giants Visa, PayPal, Mastercard, and Stripe, regulators were not assertive Diem would accommodated all authoritative and acquiescence needs.
In a last-ditch attack to abode Diem’s authoritative issues, Facebook brought on Silvergate Bank in May 2024 to affair the Diem stablecoin, a move that the aggregation hoped would advice aid the authoritative action afterwards years of opposition. However, the affiliation was ultimately bootless in acclamation Diem’s issues, as it appears Facebook is assuredly throwing in the towel.
In contempo months, opinions on stablecoins accept been mixed. In December, the U.S. Senate Banking Committee held a audition on stablecoin regulation, with several senators cogent agnosticism over accumulation dollar-pegged crypto assets into the added economy. Added recently, a bunch of U.S. banks proposed a new USDF stablecoin to action a added defended stablecoin advantage for consumers in the U.S.
While the Diem stablecoin was bootless for Facebook, approaching clandestine stablecoins may accept bigger luck as policymakers become added acceptant to the abstraction of agenda dollars.
Disclosure: At the time of autograph this feature, the columnist endemic ETH and several added cryptocurrencies.
