Meta Is Rumored To Be Looking To Sell The Diem Stablecoin Project And Assets.
Meta intends to sell Diem due of regulatory issues. The corporation intends to repay funds to investors while also relocating engineers. Other nations are considering stablecoin legislation and the creation of their own CBDCs.
Meta’s Diem stablecoin project looks to be in jeopardy, according to Bloomberg, since the business is looking to sell its assets. According to sources close to the publication, the stablecoin plans have fallen through, in part due to regulatory worries over the initiative.
The proceeds from asset sales would be used to restore funds to Meta’s investor members. Diem is apparently speaking with investment bankers on ways to sell both the intellectual property and roles for the project’s engineers.
The stablecoin has a contentious past, having been subjected to regulatory scrutiny and undergone a rebranding from its former title of Libra. The most recent of these investigations resulted in Democratic senators in the United States requesting that the firm halt the project and the Novi wallet.
The Novi wallet let WhatsApp users to send money to others. This immediately drew the attention of authorities in the United States. Finance watchdogs then suggested that regulators look into the Novi wallet.
When Diem was first announced, it sent shockwaves throughout the crypto community, as well as lawmakers all over the world. The latter group thought that a stablecoin bundle would give Meta too much power and would infringe on the role of national currencies.
Regulators are now focusing on stablecoins, and regulation should emerge in some form or another during the next 12 months. According to reports, the Biden administration would implement crypto regulations by executive order, which might include restrictions on stablecoins.
Stablecoins are viewed as a danger to national currencies, and authorities need them to qualify under financial regulations if they are to act as traditional currencies. International bodies such as the G20 are also concerned.
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