On Wednesday, the Wall Street Journal reported that Meta Platform Inc.’s digital currency project Diem Association is shutting down and selling its technology to California-based Silvergate Capital for about $200 million.
Formerly Facebook Inc., Meta first unveiled plans for Diem, called Libra previously, in June 2019, as part of an effort to expand beyond social networking into global payments and e-commerce. The project immediately ran into fierce opposition from policymakers across the globe, who stressed it could weaken their control over the money system, harm users’ privacy, and enable crime.
Looking for regulatory approvals, Facebook then renamed its digital coin to ‘Diem’ and scaled-down its global aim to concentrate on the US by declaring the launch of a U.S. dollar stable coin, which are cryptos pegged to a fiat currency.
The latest gust came when FB’s financial technology executive David Marcus, who was overseeing its efforts to create Diem, left the firm to start working on something new.