Blockzeit
  • News
    • Business
    • Politics
    • Metaverse
    • NFTs
    • Markets
    • Investing
    • Technology
    • Trends
  • Tools
    • Crypto Charts
    • Crypto Heatmap
  • Education
    • Reviews
    • Guides
    • Bitcoin Price Analysis
  • Crypto Exchanges
No Result
View All Result
  • EnglishEnglish
    • EnglishEnglish
    • DeutschDeutsch
    • PortuguêsPortuguês
Buy Crypto
  • News
    • Business
    • Politics
    • Metaverse
    • NFTs
    • Markets
    • Investing
    • Technology
    • Trends
  • Tools
    • Crypto Charts
    • Crypto Heatmap
  • Education
    • Reviews
    • Guides
    • Bitcoin Price Analysis
  • Crypto Exchanges
No Result
View All Result
Blockzeit
No Result
View All Result
Home Business
diem

diem

Meta-Backed Diem Winds Down, Sells Assets to Silvergate 

Tom Nyarunda by Tom Nyarunda
February 1, 2022
in Business
Reading Time: 3 mins read
0
Share on FacebookShare on TwitterShare on LinkedinShare via WhatsappShare via Email

The decision to sell Diem Stablecoin’s assets brings to an end a two-year effort by Mark Zuckerberg to launch the Stablecoin. The firm has long faced regulatory concerns, including five Democratic senators calling a shutdown of the coin last year.

Meta, formerly Facebook Inc.’s desire to create a Stablecoin, may have formally come to a close after the social media giant sold Diem’s assets to crypto-focused Silvergate Capital Corp. The announcement of the Monday sale brought to a close the tech giant’s ambition to get its users transacting using its cryptocurrency. 

We are pleased to announce that we have purchased blockchain payment network assets from @DiemAssociation! The acquisition is an investment in our platform and enhances our existing stablecoin infrastructure initiative. Read more here: https://t.co/CibuhijDrr

— Silvergate Bank (@silvergatebank) January 31, 2022

Silvergate said in a separate statement that it had paid $182 million for Diem’s intellectual property and other assets. The bank that had previously partnered with the group and that it would “begin the process of winding down.” Bloomberg had reported talks of a sale last week. A Diem Association spokesperson alleged at the time that the report had unspecified “factual errors.”

Criticism about the security and reliability of a private network

Diem Inc., previously known as the Libra Association, had an announcement in 2019 of plans to design a cryptocurrency and payment system that raised red flags for global finance officials, who expressed a barrage of criticism about the security and reliability of a private network. Analyst Rob Enderle of Enderle Group opined:

“The idea of Facebook doing a cryptocurrency was a bridge too far for regulators […] they have made it clear they don’t trust Facebook with what they are doing now, so sure as heck was not going to let it go into the money business.”

A barrage of roadblocks followed from lawmakers and regulators worldwide, and the project was delayed and scaled back numerous times. Among officials’ top concerns was that Diem could be used for money laundering and other illicit purposes.

The best path forward was to sell the Diem Group’s assets

Commenting about Diem’s eventual demise, CEO Stuart Levey blamed US regulators for the eventual outcome. He defended the organization’s work to minimize risk with “industry-leading controls to protect consumers and combat financial crime.” Levey stated: 

“Despite giving us positive substantive feedback on the design of the network, it nevertheless became clear from our dialogue with federal regulators that the project could not move ahead […] as a result, the best path forward was to sell the Diem Group’s assets, as we have done today to Silvergate.”

We hope that the Association’s sale of their assets to @silvergatebank will allow the project’s vision to live on. Because we still believe in the shared financial inclusion mission.

— Stephane Kasriel (@skasriel) January 31, 2022

As part of the deal, Silvergate bought development, deployment, operations infrastructure, and tools for running a blockchain-based payment network for payments and cross-border wire transfers. It’s, however, unclear now what the fate of Facebook’s cryptocurrency wallet Novi is going to be. The company launched a small pilot for Novi wallet last year with Pax Dollar. The firm’s former CEO David Marcus said Facebook was still committed to establishing Diem during that time. 

1a49ddd7 d169 48a0 a252 3fc3a2ad01bb 1
Tom Nyarunda

Tom is a freelance writer with over 10-years’ experience in content creation, blog writing, and SEO specializing in the blockchain and cryptocurrency niche. As a philosophical figurehead, he believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.

Previous Post

BitMEX Releases BMEX Token Litepaper, Airdrops over 1.5 Million BMEX to New and Existing Users

Next Post

El Salvador Rubbishes IMF’s Demand to Drop Bitcoin Use 

Related Posts

LBRY, Inc. versus US SEC; image source: cryptonews.com

US SEC Loses Securities Claim Over LBRY Case And This Is Significant For The Ripple Lawsuit

by Rickie Sanchez
February 3, 2023
0

The US Securities and Exchange Commission admitted that the sale of tokens in the secondary market are not considered as...

Dukascopy (DUK+)

4 Years Later: Where is Dukascopy Bank and its Duk+ Crypto? 

by Vincent Munene
February 3, 2023
0

Dukascopy Bank, a Swiss bank, officially launched its own token Dukascopy (DUK+) In 2019. This was the first ever cryptocurrency...

Binance x Mastercard

Binance & Mastercard To Launch Crypto Card In Brazil

by Rickie Sanchez
February 1, 2023
0

Launching in Brazil, the Binance debit card is another step towards widespread adoption of cryptocurrencies. The cryptocurrency industry's leading exchange,...

Load More

Get updates to your inbox!

Subscribe to our mailing list to receive daily updates!

FOLLoW US:

Blockzeit Logo 10 1

Blockzeit was founded in 2021 in Switzerland with the mission of bridging the gap between the complex blockchain technology and the general public. Blockzeit is a news and education platform that aims to make blockchain more accessible and bring more transparency to the scene.

Popular Categories

Categories
  • Bitcoin News
  • Business
  • Education
  • Investing
  • Markets
  • Metaverse
  • NFTs
  • Politics
  • Press Release
  • Switzerland
  • Technology
  • Trends
  • Uncategorized

Important Links

  • Privacy Policy
  • Disclaimer
  • About us
  • Contact us
  • Blockchain Jobs
  • Events

Contact & Social

For guest posts, contact us via info@blockzeit.com

 

Contact: info@blockzeit.com
Press: press@blockzeit.com

Facebook Twitter Linkedin Instagram
  • Home
  • Markets
  • Investing
  • Technology
  • Trends
  • NFTs
  • Education
  • Events
© Copyright by Blockzeit.com. All rights reserved.

Disclaimer

Start making money with crypto.

Buy Here
No Result
View All Result
  • News
    • Business
    • Politics
    • Metaverse
    • NFTs
    • Markets
    • Investing
    • Technology
    • Trends
  • Tools
    • Crypto Charts
    • Crypto Heatmap
  • Education
    • Reviews
    • Guides
    • Bitcoin Price Analysis
  • Crypto Exchanges
  • DeutschDeutsch
  • PortuguêsPortuguês

© 2021 Blockzeit by Blockzeit.