The non-profit organization Diem Association (former name – Libra Association), founded at the initiative of Meta (former name – Facebook) to start and manage cryptocurrency projects, is ceasing its activities and selling technology to California-based Silvergate Capital Corp about $200 million, the Wall Resource Street Journal reported, citing an informed source familiar with the circumstances of the case.
Meta announced plans to launch the Libra cryptocurrency in June 2019 to expand into the blockchain-based e-commerce space.
However, the project immediately met opposition from politicians around the world, who expressed fears that it could undermine state control over the monetary system, encourage crime and affect user privacy.
In this regard, Facebook decided to distance itself from the project, rename the digital coin Diem and focus on its implementation mainly in the United States, and announced the launch of a stablecoin pegged to the US dollar.
However, this did not save the project from ongoing pressure from regulators, who began pressuring Facebook partners, particularly Silvergate. Another blow to the company’s plans was the departure of Facebook CFO David Marcus, who oversaw Diem’s launch program.