Facebook Giving Up On Stablecoin Project? Execs Looking To Sell Assets

Republicat de Platon

Urmaritori: 0

Social media giant Facebook may be throwing in the towel on its goal of launching its own stablecoin, according to a new raportează din Bloomberg.

Bloomberg says that the tech titan’s plans for Diem, its attempt at a USD-backed stablecoin, are unravelling due to mounting regulatory pressure.

Bloomberg’s sources, who asked not to be named since the proceedings are not public, said that Diem is discussing with investment bankers how to best sell off their intellectual property, plus reallocate the engineers who all contributed to developing the technology. The Diem Association also wants to return capital back to its original investors.

After changing the project’s name from Libra to Diem, Meta’s Facebook then enlisted the help of Silvergate Capital Corp to help issue Diem, but the association says that the Federal Reserve Bank dealt the final blow in preventing the project from coming to fruition.

Imagine prin Shutterstock

Facebook’s ambitions also faced pressure from US lawmakers who publicly called for the tech giant to disband its plans for both Diem and its newly developed wallet, Novi. Five senators including Elizabeth Warren a spus that Facebook couldn’t be trusted to manage a global payment system because of the company’s allegedly unethical practices in the past.

„De nenumărate ori, Facebook a luat decizii de afaceri conștiente pentru a continua cu acțiuni care au afectat utilizatorii săi și societatea în general. Nu se poate avea încredere în Facebook că va gestiona un sistem de plată sau o monedă digitală atunci când capacitatea sa existentă de a gestiona riscurile și de a menține siguranța consumatorilor s-a dovedit cu totul insuficientă. Vă îndemnăm să vă întrerupeți imediat pilotul Novi și să vă angajați să nu aduceți Diem pe piață.”

While Diem appears to be disintegrating, Facebook’s Novi wallet is still under development, though its desire to utilize Diem will presumably change should plans for the stablecoin be abandoned. Currently, Novi uses Pax Dollar (USDP), but ultimately had plans to graduate to Diem.

Meta has made no public comment on the situation.