Facebook Shuts Down Cryptocurrency Venture ‘Diem Association’

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Two years back Facebook had announced a cryptocurrency division formerly known as Libra is coming to a sabbatical. Now the company is known as Diem Association is comping to a halt, winding down and selling its technology to a California based company called Silvergate Capital Corp for about 200 million dollars.  

Meta had first unveiled their plans to get into the cryptocurrency division in 2019 for Diem, as a part of an effort to expand beyond social networking, and to venture into e-commerce and global payments. As the project came into effect, it faced a lot of backlashes from policy makers globally. They were worried it could erode their control over the money system, enable crime, and might harm users’ privacy too.  

The same controversial cryptocurrency project was defended by Mark Zuckerberg Infront of  Congress is unraveling after regulatory pressure. Meta owns about a third of the venture and the rest of it is owned members of the association, according to one of the people. 

For approvals to run smoothly, Facebook changed its renamed the digital coin to ‘Diem’ and scaled down it global ambition to focus on United States by announcing the launch of a U.S. dollar stable coin which are cryptocurrencies pegged to traditional currency.   

Recently the company is also in a soup as Facebook’s financial technology executive David Marcus, who was overseeing its efforts to develop Diem, left the company to start working on something new.