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Tag: Libra 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.

  • PayPal Looking To Enter Cryptocurrency Space

    PayPal Looking To Enter Cryptocurrency Space

    PayPal is looking to get into cryptocurrency, opening the door for its 365 million customers.

    Cryptocurrency is one of the hottest trends in the tech and financial industries, with Bitcoin’s value soaring and companies of all sizes looking to cash in. Facebook’s Libra is one of the biggest efforts at widespread cryptocurrency adoption. PayPal had initially joined the Libra Association, before withdrawing last year to pursue its own goals.

    It seems that PayPal’s efforts may be close to fruition. It was previously reported by the International Business Times that PayPal is planning on allowing users to buy and sell cryptocurrencies via PayPal and Venmo. Now the IBT is reporting that, in a letter to the European Commission, PayPal has confirmed “that in addition to monitoring cryptocurrency’s evolution, it is also developing cryptocurrency capabilities in its products. The company, however, did not specify what these initiatives are.”

    PayPal’s involvement in the cryptocurrency space could be a big boon to the industry, especially if it is able to lower the barrier-to-entry for non-tech users.

  • Vodafone Leaves Facebook’s Libra Association

    Vodafone Leaves Facebook’s Libra Association

    In the latest blow to Facebook’s Libra Association, British telecom conglomerate Vodafone has announced it is withdrawing, according to CoinDesk.

    Facebook created the association to oversee the Libra cryptocurrency the company is trying to launch. The company’s efforts have been met with significant skepticism and scrutiny by governments around the world. With Facebook’s privacy track record, governments are reluctant to trust it with something as important as currency. As a result of that scrutiny, several high-profile companies had already withdrawn from the association.

    Vodafone made it clear to CoinDesk that they are not leaving the association over regulatory concerns, although their reason should be equally concerning to Facebook. Vodafone is leaving “to focus on expanding its own payment service, M-Pesa, beyond the six African countries where it’s currently available. It’s not burning bridges — the company said it wouldn’t rule out the possibility of ‘future cooperation.’”

    Many of the Libra Association members are companies that have the financial resources and industry ties to launch their own competing services. It remains to be seen if other companies will follow Vodafone’s lead.