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Facebook’s cryptocurrency venture to wind down and sell tech assets

by Mike Robinson

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© Reuters. FILE PHOTO – A 3D printed Facebook logo Meta has been placed on a laptop keyboard. This illustration was taken November 2, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) – Meta Platforms Inc’s digital currency venture Diem Association will be closing down. Silvergate Capital (NYSE) Corp purchased its technology for around $200 million. This was reported by the Wall Street Journal on Wednesday.

Meta was formerly Facebook Inc (NASDAQ:) Diem plans, also known as Libra, were unveiled in June 2019 as part of an attempt to grow beyond social networking and into global payments.

Global policymakers opposed the project right away, fearing that it would undermine their control over money, encourage crime and compromise users’ privacy.

Facebook was unsuccessful in obtaining regulatory approvals and changed the name of its digital coin to “Diem”. It also reduced its international ambitions to concentrate on the United States. Facebook announced the launch a U.S. dollars stablecoin. This is a cryptocurrency that can be pegged with a currency.

Recent blow was the departure of David Marcus (Financial Technology Executive at Facebook), who had been overseeing Facebook’s efforts to create Diem. He left to pursue new opportunities.

Reuters reached Meta and Silvergate for comments but they did not respond immediately to a request outside of business hours.

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