Mark Zuckerberg’s big ambition to create his cryptocurrency collapses under increasing regulatory pressure. According to a Bloomberg story published Wednesday morning, the Diem Association, which controls the development of the Diem digital currency, is contemplating selling its assets to restore funds to its investors.
Diem is said to be negotiating with investment bankers regarding future measures, including how to sell its intellectual property and capture any remaining value. According to Bloomberg sources, the corporation is also looking for a new home for the engineers who created this technology.
Negotiation With Investment Bankers
Diem may or may not find a buyer in the negotiations. Even if it did, the report adds that it is unclear how the intellectual property associated with the project and the engineers who developed it would be valued.
According to one person who spoke to Bloomberg on the condition of anonymity, Meta owns around a third of the company, with the rest held by members of the organization.
Libra was planned to be a stablecoin, a cryptocurrency whose value is linked to a real-world object like a fiat currency like the US dollar or a commodity like gold. Zuckerberg’s stablecoin’s initial objective was to build a global currency backed by a basket of major currencies and government debt.
Overview of Regulatory Pushback
They said it would promote illegal activities like money laundering and privacy abuses and be a formidable competitor to sovereign currencies like the US dollar. Following regulatory pushback, the troubled project shifted its focus to issuing many stablecoins, each tied to a fiat currency, as well as a multicurrency token.
It also had several supporters, but when Meta’s CEO prepared to go to Capitol Hill to defend the project, significant backers such as Visa, Mastercard, and PayPal dropped out. David Marcus, the director of Meta’s cryptocurrency activities, announced his departure in November.
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