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The crypto initiative was initially unveiled by Zuckerberg in June of 2019. Since then, the project has been plagued by problems. Libra was the original name for the cryptocurrency, which was created as a stablecoin by specialists (a cryptocurrency coin that has a value pegged to a real-world asset like the US dollar or gold). Facebook’s once-promising Diem cryptocurrency project has come to a halt because of regulatory concerns.
It was reported on Tuesday that the company, originally known as Libra, is considering selling its assets to repay investors.
According to reports, which cited people familiar with the situation, Diem is currently in negotiations with investment banks about the best method to sell its intellectual property and reclaim any residual value. It’s unclear how much Diem’s intellectual property might be worth to potential purchasers or the project’s engineers.
As per Bloomberg, talks are still in the early stages, and there is no assurance of a purchase. “Carpe diem,” tweeted Bitcoin enthusiast Jack Dorsey in response to the revelation.
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Diem, an ambitious project proposed by Meta in 2019, was intended to function as a digital currency and serve as an alternative to the US dollar and other government-managed international currencies. This was originally intended to be backed by a diverse range of currencies and government debt.
However, because of authorities’ fears that it may disrupt financial stability and compromise user privacy, Facebook announced that it will only begin as a single currency secured by the dollar.
In October 2019, CEO Mark Zuckerberg testified before Congress, stating that Diem will only be distributed after gaining complete US regulatory approval. Despite having strong backers including Visa, Paypal, and master card, the stablecoin project was continuously under regulatory examination, and Diem was finally abandoned because of the attention. Federal observers finally specified what they were looking for in November.
Based on a study by the president’s working group on financial markets, if tokens are used to purchase and sell things, the issuer of a stable coin must be a registered bank.
A group of authorities is concerned about what may happen if a massive network of internet company customers suddenly begins trading in new currencies, joining stable coin suppliers and large corporations to create “excessive economic power.”
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