Diem, the digital currency project previously known as Libra created by Meta (NASDAQ:FB) (formerly doing business as Facebook) may be for sale. According to a report by Bloomberg, Diem is on the auction block due to “regulatory pressure.”
Initially launched with great fanfare as a global, non-sovereign digital currency, Diem pretty much went downhill from there.
More recently, Meta enabled its digital wallet Novi to transfer funds using Paxos’ dollar-based stablecoin USDP via WhatsApp – another Meta company. Initially released in Guatemala and the US, Novi is expected to become a global payments and transfer product. Missing from Novi is the Diem crypto as it has been replaced by the third-party stablecoin.
According to the report, Diem has enlisted investment bankers to “sell its intellectual property and find a new home for the engineers who developed the technology.” It is unclear as to what exactly would be included in any purchase beyond a brand and a website.
Diem was effectively stillborn once global policymakers became aware of the digital currency concept while Meta attempted to line up a squadron of partners to support the crypto’s launch. A combination of general hostility towards Facebook/Meta and concern about the policy ramifications of Diem led to multiple hearings on Capitol Hill as well as questions from international regulators. Ironically, if Meta had called Diem a payments platform and veered from the crypto label, it may have dodged much of the political fallout. Last November, David Marcus, Meta’s digital currency lead, announced his departure from the company foreshadowing the project’s demise.
While Meta is said to own just a third of the project the bulk is owned by VCs and other partners. The report also indicated there was no guarantee that the company would be able to find a buyer for Diem.
