Meta, formerly known as Facebook, has officially announced the closure of the Diem digital currency project after many years of great efforts to promote this initiative.
When the news was announced on Monday, Diem CEO Stuart Levy confirmed that Meta was selling intellectual property and other assets related to Diem’s stackcoin investment to Silvergate Capital Corporation.
Levy said Deem and its subsidiaries will begin liquidating “in the coming weeks.” However, the association remains confident that Dim’s ideals will continue to thrive even after Meta is officially out of the project, as noted by the CEO:
“We remain confident in the potential of the blockchain stackable coin developed by Diem to deliver the benefits that have motivated Diem since its inception. With today’s sales, Silvergate will be well positioned to further this vision.”
According to an official statement from Silvergate, the company will buy Dim’s assets for a total of $182 million. “As part of the consolidation of assets acquired under existing Silverjet technology, Silvergate expects to incur additional costs of approximately $30 million by 2022,” the company said in a statement.
Specifically, Silvergate Bank, a Silvergate subsidiary and stable meta partner, is integrating its Silvergate Exchange Network payment platform with Diem assets. The new combination will help the bank launch “a next-generation global payment system that is faster, easier to use and more cost-effective than existing solutions,” the announcement said.
“We have identified the need for a stable currency backed by the US dollar that is structured and easily scalable to allow for a seamless flow of funds. We remain committed to meeting this need by issuing a stablecoin in 2022,” said Alan Lane. CEO of Silvergate.
Meta officially unveiled its digital currency project in 2019, which was originally called Libra and includes a fund of major global companies such as Mastercard, PayPal, Visa, eBay and others. The project has sparked massive opposition from regulators around the world, with financial authorities voicing serious concern over the possibility of the tech giants gaining too much financial power.
Despite significant regulatory pressure, Meta has attempted to roll out some of its services to the US, with WhatsApp Messenger testing payments using the Metas Novi wallet in December 2021.
“In the US, a senior regulator told us that Diem is the best-designed stablecoin project the US government has seen,” CEO Levy said.
Related: PayPal Stablecoin: What It Could Mean for Payments
While the Deem Association encapsulates its stack coins, some of the original members continue with their stack coin plans. In January, PayPal officially confirmed that it was “exploring a stackable coin,” which could be called the PayPal Coin.