Today, U. Senators Richard Blumenthal D-Conn. Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient. Facebook subsequently shelved Libra amid regulatory scrutiny, but the company has now revived its efforts under new branding. The full text of the letter is available here and can be found below:.
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- Facebook cryptocurrency Diem: Why is it the end for Mark Zuckerberg's stablecoin project?
- Facebook winding down cryptocurrency effort: report
- What is the Diem Coin
- Facebook reportedly ditches Diem stablecoin with asset sale
- Facebook’s cryptocurrency venture to wind down, sell assets
- Facebook-backed Libra Association changes its name to Diem
- Facebook Confirms: Novi Wallet To Launch With Diem Crypto Network
- Zuckerberg’s Stablecoin Ambitions Unravel With Diem Sale Talks
- Meta’s cryptocurrency project looks to be in tatters
Facebook cryptocurrency Diem: Why is it the end for Mark Zuckerberg's stablecoin project?
The Diem Association, formerly known as the Libra Association, is considering selling its assets and returning money to investors, according to a Bloomberg report. Perhaps the most valuable part of the association is its engineers.
Libra was to be managed via blockchain, with member organizations processing and verifying transactions. Originally, it was planned to be backed by conventional currencies and other stable assets, making it a so-called stablecoin.
Eventually, though, that scope was reduced to focus on the US dollar alone. Almost immediately, Libra ran into headwinds. Regulators questioned the distributed nature of the project and how the company would police activity on the network. Facebook adjusted, making the Libra Association responsible for compliance with financial laws, including money laundering and terrorist financing.
Still, the project soldiered on, making tweaks here and there and changing its name to Diem. Meta still owns about a third of the Diem Association, according to the Bloomberg report. You must login or create an account to comment. Email tim. Channel Ars Technica.
Facebook winding down cryptocurrency effort: report
Meta-backed cryptocurrency project Diem appears to be falling apart before it even launches as it looks to sell its assets to return capital to investors, according to Bloomberg. The Diem Association, which is in charge of the project that is backed by Meta, is rumoured to be in discussion with investment bankers on how to cash out on the project, including putting its intellectual property up for sale. Meta owns a third of Diem while the other two thirds are owned by members of the Diem Association, which includes VC firms and other tech firms. Novi introduced a long-expected digital wallet last year to a limited set of users, using a stablecoin from Paxos, not the still-unavailable Diem coin. Your email address will not be published. Post Comment.
What is the Diem Coin
VentureBeat Homepage. Did you miss a session from the Future of Work Summit? Head over to our Future of Work Summit on-demand library to stream. Plans for Libra, first floated by Facebook last year , were slimmed down in April after regulators and central banks raised concerns it could upend financial stability, erode control over monetary policy, and threaten privacy. He declined to comment on timing for the launch, which the Financial Times reported last week could be as early as January. Levey said only that the launch would only go ahead after approval by the Swiss market watchdog. Diem aims to set itself apart with its focus on aspects of concern to regulators and Western governments, including sanction controls and financial crime, Levey said. The group behind Diem has said they would develop policies for sanctions compliance and to fight money laundering and terrorist financing. They added that the project has ditched earlier plans to allow anyone to join its network. VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact.
Facebook reportedly ditches Diem stablecoin with asset sale
Producer, director, actor and politician Kamal Haasan is set to become the first Indian celebrity to have his own digital avatar in a metaverse. Choose your reason below and click on the Report button. This will alert our moderators to take action. Nifty 17, Policy Bazaar
Facebook’s cryptocurrency venture to wind down, sell assets
The age of majoritarianism has birthed a second wave of identity politics across India. As five states are ready to go to polls At no time do the politics of identity play out more spectacularly than during an Indian election. This poll season is no different Meta Inc has announced that it will shelve its plan to launch blockchain-based stable coin Diem, while the global crypto market cap rose 3. The crypto trading volume, however, declined by
Facebook-backed Libra Association changes its name to Diem
The Diem Association, formerly known as the Libra Association, is considering selling its assets and returning money to investors, according to a Bloomberg report. Perhaps the most valuable part of the association is its engineers. Libra was to be managed via blockchain, with member organizations processing and verifying transactions. Originally, it was planned to be backed by conventional currencies and other stable assets, making it a so-called stablecoin. Eventually, though, that scope was reduced to focus on the US dollar alone. Almost immediately, Libra ran into headwinds.
Facebook Confirms: Novi Wallet To Launch With Diem Crypto Network
Meta and its partners have pulled the plug after running into significant opposition from regulators and politicians. Meta and Silvergate both declined to comment. The name Diem was adopted in December in a bid to show the currency would be independent from Facebook, but this failed to provide fresh impetus, and now the project has been spiked for good. Diem would have been a stablecoin, a type of cryptocurrency which has its value attached to the performance of a conventional fiat currency such as the US dollar.
Zuckerberg’s Stablecoin Ambitions Unravel With Diem Sale Talks
Diem has been through several iterations since it was first announced in June , with adjustments not being limited to just a change of name. Now those behind the project are beginning to reveal where they expect Diem to sit within financial markets and how the stablecoin will overcome regulatory and structural hurdles as it enters use. Christian Catalini, chief economist at the Diem Association and co-creator of Diem, tackled many of the concerns surrounding it, presenting it as a tightly regulated organisation that is also incorporating some of the best features of new digital currencies. Diem had already made the transition to focus on single currency stablecoins fully backed by reserves, concentrating on the Diem dollar initially and abandoning a move toward a permissionless system in the future. Catalini went further at the OMFIF meeting, detailing how Diem will not allow the stablecoin to be fractionalised or leveraged elsewhere. Diem, in its payment license application, is essentially being treated as a new bank by its regulator, the Swiss Financial Market Supervisory Authority, Catalini said.
Meta’s cryptocurrency project looks to be in tatters
After spending more than a year seeking authorization from regulators in Switzerland , Facebook-backed Diem is changing tack. This week, Diem announced changes to its operating model and a shift in commercial focus. The stablecoin project, which has already made several adjustments to its plans in the face of regulatory scrutiny , has withdrawn its application with Swiss regulators and will instead focus its efforts on the US market. As a state-chartered bank and Federal Reserve member, Silvergate will manage reserves for the stablecoin, while Diem will establish a permissioned payments network that will enable approved businesses to handle the coin. While Diem will have to register as a money service business with the US Treasury's Financial Crimes Enforcement Network FinCEN , the process - coupled with Silvergate's existing banking charter - should offer a more straightforward pathway to getting the project off the ground. While hardly the end of the journey, Diem is no doubt betting that the US will prove the best place to obtain authorization for its activities before going global.