Facebook's crypto project Diem sold after pushback

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geemong
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Facebook's crypto project Diem sold after pushback

Post by geemong »

Facebook's crypto project Diem sold after pushback

 
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The Facebook-backed digital currency project Diem announced on Monday (Jan 31) the winding down and US$182 million sale of its technology, capping a years-long initiative that drew significant concern from regulators.

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Facebook's announcement in 2019 of plans to design a cryptocurrency and payment system raised immediate red flags for global finance officials, who expressed a barrage of criticism about the security and reliability of a private network.

Diem Networks' US CEO Stuart Levey said in a statement that the initiative made progress, but "it nevertheless became clear from our dialogue with federal regulators that the project could not move ahead".

"Over the coming weeks, the Diem Association and its subsidiaries expect to begin the process of winding down," the association's statement said.

The technology was bought by Silvergate Capital Corporation in California that is a go-to for crypto projects, and which put the sale price at US$182 million.

Silvergate bought development, deployment and operations infrastructure, as well as tools for running a blockchain-based payment network for payments as well as cross-border wire transfers.


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Re: Facebook's crypto project Diem sold after pushback

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