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- Stuart Levey, CEO of the Geneva-based Diem Association, said at the time that the change is a direct result of regulatory constraints. The previous moniker was connected to an early incarnation of the idea that received harsh criticism, he explained. Levey also revealed that the Diem currency would have a dollar-backed signal token
- Despite the multiple transitions that the project underwent to stay current, the Diem team eventually would have to sell its intellectual property and technical assets to Silvergate Bank, an American financial organization.As a result, Zuckerberg’s proposal to establish a single global digital currency was a resounding failure.
- Mark Zuckerberg (Co-Founder and CEO of Meta/Facebook) stated in September 2019 that the stablecoin would not be published until it had received permission from American regulators. Financial watchdogs from France, Germany, and other G20 countries rallied against Libra shortly after his announcement, claiming that it posed major risks to investors and might be used in money-laundering operations
Diem (Libra), A Once-Promising Cryptocurrency Concept, Was Sold To Silvergate Capital After Less Than Three Years
Despite its brief existence, Facebook’s digital asset project Diem (formerly known as Libra) has managed to pique the interest of the cryptocurrency community as well as, perhaps more crucially, worldwide authorities. While detractors think it undermines financial sovereignty and monetary stability, it has changed its concept, objective, and core principle several times throughout the years.. Furthermore, considering Facebook’s past, there were concerns about a lack of privacy.
Despite the multiple transitions that the project underwent to stay current, the Diem team eventually would have to sell its intellectual property and technical assets to Silvergate Bank, an American financial organization. As a result, Zuckerberg’s proposal to establish a single global digital currency was a resounding failure.
Libra’s First Birthday
Libra, a digital asset project funded by Facebook, was launched by Morgan Beller, David Marcus, and Kevin Weil in June 2019.. It was originally planned to release a stablecoin, as the team behind it hoped it would evolve into a global payment system. The crypto community had conflicting opinions about the idea. Being funded by the largest social media company in the world brought a lot of attention, but not always in a positive way. While some people believed in the proposal, the majority questioned whether such a big notion would ever get off the ground.
Despite this, many traditional financial firms originally supported Facebook’s initiative. PayPal, eBay, Visa, Mastercard, Booking Holdings, and other companies were among the companies mentioned. Even the Bank of England, which is known for being a staunch opponent of bitcoin, claimed that Libra does have the potential of becoming a systematically important payment system at one point.
Mark Zuckerberg (Co-Founder and CEO of Meta/Facebook) stated in September 2019 that the stablecoin would not be published until it had received permission from American regulators. Financial watchdogs from France, Germany, and other G20 countries rallied against Libra shortly after his announcement, claiming that it posed major risks to investors and might be used in money-laundering operations. Donald Trump, the former President of the United States, has also expressed his opposition to the proposal. He was concerned that Libra, as a staunch supporter of the United States dollar, would harm the country’s only legitimate currency.
As a result, a number of partners began to drop out of the initiative, with PayPal being the first to do so. Furthermore, legal difficulties were brought to light when a firm called Libra claimed ownership of the Libra trademark. This was one of the first indications that the project would not go as planned.
From Libra To Diem
Despite the complaints, Zuckerberg remained committed to the concept. He even came out in favor of it at a Congressional committee, but his efforts were in vain, and the project remained a thorn in the side of critics. In December 2020, the team changed Libra’s name to Diem (the Latin word for the day) to differentiate it from the initial notion.
Stuart Levey, CEO of the Geneva-based Diem Association, said at the time that the change is a direct result of regulatory constraints. The previous moniker was connected to an early incarnation of the idea that received harsh criticism, he explained.Levey also disclosed that the Diem currency would feature a signal token backed by the dollar. Several developments last year suggested that the asset would eventually have seen the light of day. In April 2021, the team behind the project stated that the stablecoin would be released before the end of the year, but did not provide a particular date.
A couple of months later, the Diem Association teamed up with Silvergate Bank, an American crypto-friendly bank. Both parties intended to develop a stablecoin that would be tethered to the US dollar. The former moved between Switzerland to the United States, it was seen as a regulatory step in the right way. In August, Diem Association board member David Marcus announced that now the blockchain project has resolved its concerns with US regulators by obtaining licenses in nearly all states. Unlike Donald Trump, he believes that the creation of such a stablecoin will benefit those who do not have access to financial services while also assisting the US in maintaining the dollar’s status as the world’s reserve currency.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
