Diem, a stablecoin crypto project supported by Meta, after facing regulatory scrutiny and executive departures, is reportedly attempting to sell its assets and put an end to the plan for the stablecoin to serve as the internet’s currency.
Diem is Meta Platform’s cryptocurrency project, which was previously known as Libra. It is considering selling assets to restore funds to its investors, according to insider sources speaking with Bloomberg.
Diem is in talks with investment bankers, according to sources, to figure out the best approach to sell its intellectual property and cash in on whatever value the project has retained.
It’s uncertain how much the firm will be worth, and there’s no assurance they’ll be able to sell it. Meta owns around a third of the company, according to the source. Members of the association and partners, including Coinbase Global, Uber, and Shopify, own the rest.
Diem and regulatory issues with the government
In the short period since its inception on June 18, 2019, Diem has stirred a slew of debates. Libra, as it was known at the time, was supposed to be managed by a group of corporations based in Switzerland called the “Libra Association.”
However, the announcement of the project’s start was met with swift opposition from the US government and international authorities, who raised worries about privacy and monetary sovereignty. The House Financial Services Committee heard testimony from both Facebook CEO Mark Zuckerberg and former Libra CEO David Marcus.
“Do you truly think people should trust Facebook with their hard-earned money?” Senator Sherrod Brown of Ohio asked Marcus during a hearing in July of 2019.
“If our government does not act, we may soon see a digital currency controlled by others with beliefs that are diametrically opposed to ours,” Marcus answered.
Many partners, including Marcus, were put off by governmental scrutiny and finally dropped out of the project. It was at this moment that it changed its name to Diem, in an attempt to shake off the regulatory fear that had followed Libra’s first announcement.
