Facebook Faces the Collapse of Its Cryptocurrency “Meta”
Facebook's Cryptocurrency in Continuous Collapse!!
Facebook “Meta” has been facing a permanent collapse in its cryptocurrency for a long time
The cryptocurrency of the Facebook project is in a permanent state of collapse,
and what stirred the greatest controversy on the subject was Facebook founder Mark Zuckerberg's defense
before the US Congress following regulatory pressure,
and more than two years after it was first announced, it seems that this Facebook-backed cryptocurrency is on the verge of ending soon,
The “Diem” Association, a cryptocurrency initiative formerly known as “Libra”,
with direct backing from the company “Meta”, which is the owner of Facebook,
has been studying the sale of its assets as a means of returning capital to investors,
“Diem” has held several discussions with investment bankers about selling its intellectual property,
and it also wants to find new employment for the engineers who developed this technology,
and it also wants to recover any remaining value in the “Diem” currency project.
When Facebook first revealed in “2019” its idea for its own digital currency,
a stablecoin aimed at revolutionizing global financial services,
and did so in collaboration with dozens of other companies as well,
but the consortium alone was not enough to make this project strong and capable of withstanding global regulatory scrutiny,
after Facebook founder “Zuckerberg” was called to testify,
some partners abandoned the project and they renamed it “Diem”,
and “Diem”’s ambitions also retreated and its founder, David Marcus,
left “Meta” last year. The association also struck a deal with “Silvergate Capital” to issue “Diem”,
but resistance from the US Federal Reserve dealt a fatal blow to these efforts,
In May, the “Diem” Association stated that one of the subsidiaries of “Silvergate Capital”,
which was set to be the issuer of the relatively stable “Diem USD” coin,
a type of cryptocurrency pegged to the US dollar that is typically used to buy and sell other cryptocurrencies,
and after a long period of dispute between “Diem” and regulators on the other side,
Federal Reserve officials told “Silvergate Capital” that the agency was not comfortable with this matter,
and could not assure the company that it might allow this activity at all,
and without the green light from the Federal Reserve, “Silvergate Capital” became
unable to issue the new asset with confidence that the Federal Reserve would not take strict action as a result.
The Cryptocurrency Defended by Facebook's Founder Is in Continuous Collapse:
It is not clear how a potential buyer of “Diem”’s intellectual property,
or the engineers who helped develop it as well, could proceed. Meta owns more than a third of the project and the rest is divided among association members,
and the association’s members, which include venture capital firms and technology companies as well,
agreed to invest and pay to join when the association was formed, and it is not clear which of these companies,
alongside Meta, also became investors in this initiative,
and “Diem” indicates that its partners include venture capital firms,
in addition to sovereign investors in Singapore “Temasek Holdings Pte”,
The President’s Working Group on Financial Markets said in a report issued last November,
that stablecoin issuers must be subject to regulation if the tokens are being used as a means to buy and sell things,
and the group of regulators said they fear what might happen,
if a vast network of a technology company’s users suddenly started transacting in a new currency,
in addition to the fact that combining a stablecoin issuer with a large company could lead to an excessive concentration of economic power.
