The end: Facebook-backed digital currency Diem sold to bank

Jan 31, 2022, 8:48 PM | Updated: Feb 1, 2022, 1:17 pm
FILE - A man walks past a mural in an office on the Facebook campus in Menlo Park, Calif., June 11,...

FILE - A man walks past a mural in an office on the Facebook campus in Menlo Park, Calif., June 11, 2014. A once-ambitious but now faltering Facebook-backed digital currency project known as Diem, formerly known as Libra, is dead and its assets sold to bank holding company Silvergate Capital. (AP Photo/Jeff Chiu, File)

(AP Photo/Jeff Chiu, File)

A once-ambitious but now faltering Facebook-backed digital currency project known as Diem is dead, its assets sold to bank holding company Silvergate Capital.

Silvergate and the Diem Association announced the sale on Tuesday. Meta, which owns Facebook, did not have a comment.

A Faceboook spokesperson, however, pointed to tweets by Stephane Kasriel, head of Meta’s cryptocurrency wallet Novi, that said the decision to sell was not made by Meta, but by the Diem Association.

“We hope that the Association’s sale of their assets to @silvergatebank will allow the project’s vision to live on. Because we still believe in the shared financial inclusion mission,” Kasriel wrote.

Diem said it “became clear from our dialogue with federal regulators that the project could not move ahead. As a result, the best path forward was to sell the Diem Group’s assets” and the project will wind down in the coming weeks.

It’s been clear for a while that Diem, which was first named Libra, was fighting an uphill battle with regulators. Meta has gradually distanced itself from the project.

Last May, the Diem Association, which at the time included Facebook and 25 other companies entered a partnership with Silvergate Capital Corp. to issue a “stablecoin” backed by the U.S. dollar. A stablecoin is a digital currency backed by real-world assets such as national currencies or other commodities.

Facebook announced the Libra project in 2019, at the time envisioning it as a stablecoin based on a basket of national currencies that could serve as a global currency for the unbanked around the world.

But the effort was scaled back considerably amid regulatory and commercial backlash. It underwent a name change in December 2020.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Arby's - LEHI, UT - OCTOBER 26: Exterior view of an Arby's restaurant on October 26, 2017 in Lehi, ...
Associated Press

Ex-Arby’s manager in Vancouver, Wash. sentenced after urinating in milkshake mix

A former manager at an Arby’s restaurant admitted to possessing child pornography and urinated into a milkshake mix
19 hours ago
FILE - In this photo released by Xinhua News Agency, Japanese Prime Minister Shinzo Abe, left, shak...
Associated Press

Friend or foe? Japan-China ties complicated after 50 years

TOKYO (AP) — Friend or foe? Or both? On the streets of Tokyo and Beijing, the ties between Japan and China remain complicated and often contradictory, 50 years after the two Asian countries normalized relations as part of the process that brought Communist China into the international fold. Chinese official media and textbooks memorialize the […]
19 hours ago
FILE - Coolio performs at halftime of an NBA basketball game between the Phoenix Suns and the New O...
Associated Press

‘Gangsta’s Paradise’ rapper Coolio dies at age 59

LOS ANGELES (AP) — Coolio, the rapper who was among hip-hop’s biggest names of the 1990s with hits including “Gangsta’s Paradise” and “Fantastic Voyage,” died Wednesday at age 59, his manager said. Coolio, whose legal name was Artis Leon Ivey Jr., died at the Los Angeles home of a friend, longtime manager Jarez Posey told […]
19 hours ago
U.S. Vice President Kamala Harris, right, exits Air Force Two at Osan Air Base on her arrival, in P...
Associated Press

VP Harris to visit DMZ after North Korean missile tests

PYEONGTAEK, South Korea (AP) — U.S. Vice President Kamala Harris is capping her four-day trip to Asia with a stop at the heavily fortified Demilitarized Zone dividing the Korean Peninsula as she tries to demonstrate the U.S. commitment to the security of its Asian allies. The visit on Thursday comes on the heels of North […]
19 hours ago
Curious sightseers walk in the receding waters of Tampa Bay due to the low tide and tremendous wind...
Associated Press

Water drains from Tampa Bay from Ian’s winds, then refills

TAMPA, Fla. (AP) — Water driven back by powerful winds drained from Tampa Bay as Hurricane Ian approached Florida’s Gulf Coast on Wednesday, and some dared to venture out on the exposed bay floor. Ian eventually made landfall as a major hurricane near Fort Myers, about 100 miles (160 kilometers) to the south. A number […]
19 hours ago
Registrar Kristen Schmidt takes stock of the painting "Seated Man" by Elaine de Kooning, wife of Wi...
Associated Press

Arizona museum exhibit marks end to de Kooning painting saga

PHOENIX (AP) — After a Willem de Kooning painting worth millions was brazenly stolen in 1985 from an Arizona museum, the staff clung to the hope that it would turn up one day. But nobody could have predicted “Woman-Ochre” would find its way back through the kindness of strangers in a neighboring state. “I would […]
19 hours ago

Sponsored Articles

Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.
...

Anacortes – A Must Visit Summertime Destination

While Anacortes is certainly on the way to the San Juan Islands (SJI), it is not just a destination to get to the ferry… Anacortes is a destination in and of itself!
...

Ready for your 2022 Alaskan Adventure with Celebrity Cruises?

Celebrity Cruises SPONSORED — A round-trip Alaska cruise from Seattle is an amazing treat for you and a loved one. Not only are you able to see and explore some of the most incredible and visually appealing natural sights on the planet, but you’re also able to relax and re-energize while aboard a luxury cruise […]
The end: Facebook-backed digital currency Diem sold to bank