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Tag: Diem Association

  • Meta-Backed Diem Considering Sale of Assets, May Shut Down

    Meta-Backed Diem Considering Sale of Assets, May Shut Down

    Diem, the Meta-backed cryptocurrency project, is considering a sale of its assets and may ultimately dissolve.

    The Diem Association began its life as the Libra Association, with backing from some of the biggest companies in the world. Ultimately, Facebook’s backing proved to be part of its undoing, with lawmakers around the world expressing concern over the prospect of Facebook having even more of people’s sensitive data. The project lost the backing of multiple high-profile companies, and ultimately changed its name to Diem.

    It appears the project’s fortunes have not improved in the intervening months. According to Bloomberg, sources familiar with the matter have said the association is considering a sale of its assets as a way to return money to investors. The association has even gone so far as to enlist the assistance of investment bankers to help it chart the best way to accomplish this goal, as well as help its engineers find a place to land.

    If the report is true, it would mark a major failure for Meta, and comprise one of the worst instances of its reputation for poor privacy severely limiting its ambitions.

  • Libra Association Changes Name to Diem Association

    Libra Association Changes Name to Diem Association

    The Libra Association has changed its name to the Diem Association to signal a new phase in its development.

    The Libra Association was initially proposed and created by Facebook. Although there are other companies involved in the association, it is most closely associated with Facebook—a point that has proved a bit of a hinderance to the fledgling platform. Many lawmakers around the world were concerned with the possibility of giving Facebook even more access into people’s financial lives.

    A year ago, these concerns contributed to a number of high-profile members of the association reconsidering their involvement. It also led to the creation of OpenLibra, “an open platform for financial inclusion. Not run by Facebook.” Facebook eventually began considering currency-backed options in an effort to help win regulatory approval.

    Libra has taken the next step by renaming itself to the Diem Association, with the currency being called Diem as well. Latin for “day,” the name change to Diem signals a new day for the cryptocurrency project.

    “The Diem project will provide a simple platform for fintech innovation to thrive and enable consumers and businesses to conduct instantaneous, low-cost, highly secure transactions,” said Stuart Levey, the Diem Association’s CEO. “We are committed to doing so in a way that promotes financial inclusion – expanding access to those who need it most, and simultaneously protecting the integrity of the financial system by deterring and detecting illicit conduct. We are excited to introduce Diem – a new name that signals the project’s growing maturity and independence.”

    The association is moving full speed ahead with its plans to gain regulatory approval, and the name reflects input from those efforts.

    “The evolution of the project results from constructive ongoing engagement with governments, regulators and other key stakeholders,” said Levey

    It remains to be seen if the currency will gain widespread backing and support, although the name change may help give it the boost it needs.