Meta-backed stablecoin project Diem (formerly Libra) is falling apart under pressure from regulators, Bloomberg has reported.
According to sources, the Diem Association is reportedly considering selling intellectual property and other assets to “return capital to investor members.” The consortium is also looking for a new job for development engineers.
Facebook’s (now Meta) plans to issue its own cryptocurrency were unveiled in 2018.
In June 2019, the Libra basket-backed stablecoin project was officially announced with the publication of its white paper. Facebook introduced the Calibra wallet at the same time.
However, Facebook’s crypto project worried regulators, and in July, hearings on it were held in the US Senate Banking Committee.
In October, payment companies Visa, Mastercard, PayPal and Stripe were in no hurry to sign official documents on participation in the Libra Association due to regulatory problems and they eventually left the project.