{"id":56612,"date":"2022-01-26T11:28:55","date_gmt":"2022-01-26T09:28:55","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=56612"},"modified":"2025-09-04T07:19:42","modified_gmt":"2025-09-04T04:19:42","slug":"bloomberg-reports-potential-collapse-of-metas-diem-project","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bloomberg-reports-potential-collapse-of-metas-diem-project\/","title":{"rendered":"Bloomberg reports potential collapse of Meta’s Diem project"},"content":{"rendered":"

The Meta-backed stablecoin project Diem (formerly Libra) is unraveling under regulatory pressure, Bloomberg<\/a> reports.<\/p>\n

According to sources cited by the publication, the Diem Association is considering selling intellectual property and other assets to ‘return capital to member investors’.<\/p>\n

The consortium is also seeking new roles for its software engineers.<\/p>\n

Plans by Facebook (now Meta<\/a>) to launch its own cryptocurrency were revealed in 2018.<\/p>\n

In June 2019, the Libra stablecoin project, backed by a basket of currencies, was officially announced with the publication of a white paper. At the same time, Facebook unveiled the Calibra wallet. The unit behind the project was previously led by former Coinbase director and Facebook vice-president David Marcus.<\/p>\n

To oversee the payments network, Facebook created a non-profit organization, the Libra Association. Among its members were Visa, Mastercard, PayPal, Uber, Spotify, Andreessen Horowitz, Coinbase and other well-known companies.<\/p>\n

The Facebook cryptocurrency project drew regulatory concern, with hearings on it held in the U.S. Senate Banking Committee in July.<\/p>\n

In October it emerged that Visa, Mastercard, PayPal and Stripe were slow to sign formal participation agreements with the Libra Association due to regulatory concerns. They subsequently withdrew from the project.<\/p>\n

In May 2020, Facebook rebranded the Libra wallet from Calibra to Novi and created a new operator for it. In December, the consortium behind the project renamed<\/a> its name to the Diem Association.<\/p>\n

Despite repeated announcements<\/a>, the launch of the Diem coin never materialised.<\/p>\n

In 2021, stablecoins drew increasing scrutiny from financial regulators, both in the United States, including SEC<\/a> and Treasury<\/a>, as well as globally<\/a>.<\/p>\n

According to Bloomberg, in May the Diem Association signed an agreement to issue Diem with Silvergate Bank, which was to become the issuer of the dollar-linked stablecoin. However, the bank did not receive approval from the U.S. Federal Reserve.<\/p>\n

Sources cited by Bloomberg described this as the final blow to Meta’s cryptocurrency plans.<\/p>\n

In December 2021, Meta’s head of payments David Marcus announced his departure from the company<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Meta-backed stablecoin project Diem (formerly Libra) is unraveling under regulator pressure, Bloomberg reports.<\/p>\n","protected":false},"author":1,"featured_media":56613,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[2049,1089,1293],"class_list":["post-56612","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-diem-association","tag-libra","tag-meta"],"aioseo_notices":[],"amp_enabled":true,"views":"32","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/56612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=56612"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/56612\/revisions"}],"predecessor-version":[{"id":56614,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/56612\/revisions\/56614"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/56613"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=56612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=56612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=56612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}