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Mark Zuckerberg’s botched cryptocurrency project is reportedly for sale

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Mark Zuckerberg, Facebook’s CEO, speaks at a virtual and augmented reality conference live streamed to announce Facebook’s rebranding as Meta. This screen capture is taken from an October 28th 2021 video.

Facebook via Reuters| via Reuters

Under increasing pressure from regulators, Mark Zuckerberg’s ambition to create his own cryptocurrency has fallen apart.

The Diem Association, which oversees development of the Diem digital currency, is considering a sale of its assets, in order to return capital to its investors, according to a Bloomberg reportReleased Wednesday morning.

Diem Association spokesperson declined to comment. Facebook is the parent company. MetaResponding to an inquiry for comments, he did not answer.

According to reports, Diem is currently in discussions with bankers regarding next steps. This includes how it can sell its intellectual property in order to capture any value that is still there. Bloomberg sources say Diem is trying to locate a new home for its engineers, who created this technology.

Talks remain in the early stages of negotiations and Diem is unlikely to find a buyer. The report said that even if they did, it was not clear how they would value the intellectual property of the project or its engineers.

Bloomberg was informed by a person who spoke on condition of anonymity that Meta owned about one-third of the venture. The remainder of the venture is held by members of the association, including Ribbit Capital, Union Square Ventures and Andreessen Horowitz. 

Since its June 2019 announcement, Zuckerberg’s crypto project is in limbo.

The time was the cryptocurrency was called LibraThe stablecoin was first conceived in the sense of a cryptocurrency. It is one of several cryptocurrencies that can be compared to real assets, like a currency such as the U.S. dollars or an asset like gold. Zuckerberg’s stablecoin is an example. the initial plan was to launch a universal currencyAn agreement to pay a certain amount of government debt and a set of currencies.

Politicians and central bankers immediately reacted with hostility to the project. They feared that it could facilitate money laundering and other criminal activities, and also threaten sovereign currencies such as the U.S. dollars. After the regulatory backlash, the embattled project pivotedTo the idea of launching multiple stablecoins each would be tied to a fiat currency plus one multicurrency coin.

In the end, however, the idea for cryptocurrency was reduced to Diem USD (a U.S.-backed stablecoin).

Project itself was also subject to a complex chain of ownership, which saw the project suffer an exodus from top-ranking executives and corporate partners.

The company also had support from multiple partners at one time. as the Meta chief headed to Capitol Hill to defend the project,These key supporters include Visa, MastercardPlease see the following: PayPalIt was dropped. In November of last year,David Marcus announced the departure of Meta’s head of cryptocurrency initiatives.

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