The endeavour by Mark Zuckerberg to develop a universally recognised cryptocurrency has come to an end. The organisation behind the Diem cryptocurrency announced on Monday that it was closing down and selling off its intellectual property.
According to the Diem Association, a charity that Zuckerberg’s Meta helped form in 2019, the cryptocurrency project, originally known as Libra, failed to take off because government officials refused to play along.
“Despite providing us with favourable substantive comments on the network architecture,” the organization said in a statement, “it became evident from our interaction with federal authorities that the project could not proceed further.”
The Diem Association did not go into detail about the difficulties. However, due to regulatory opposition, the Bitcoin initiative may have been doomed from the start. Diem was created by Facebook CEO Mark Zuckerberg with the purpose of creating new blockchain-based money that consumers could use across their mobile devices without having to pay extra costs for currency transfers.
However, US politicians and European authorities were afraid that Zuckerberg’s firms would have too much control over the global financial system as a result of the cryptocurrency initiative. It also occurred a year after the Cambridge Analytica debacle, in which tens of millions of Facebook users’ personal information was revealed.
In less than a year, Zuckerberg’s project partners, including PayPal, eBay, Stripe, Mastercard, and Visa, dropped out due to difficulties obtaining regulatory permission. David Marcus, Meta’s head of bitcoin activities, was fired in November.
Despite the fact that the Diem Association is disbanding, the group’s cryptocurrency assets will continue to exist. The intellectual property is being purchased by Silvergate, a financial company that specialises in digital currencies.
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“We remain optimistic about the ability of a stablecoin based on a blockchain like Diem’s to achieve the benefits that drove the Diem Association from the start.” “According to the Diem Association. “Silvergate will be well-positioned to carry this goal forward as a result of today’s sale.”