Diem’s website shows that its partners include venture capital firms such as Andreessen Horowitz, Union Square Ventures, Ribbit Capital, and Thrive Capital as well as Singapore state-owned investor Temasek Holdings Pte. Its website also lists crypto-focused companies like Coinbase Global Inc., and others such as ride-hailing company Uber Technologies Inc. and commerce platform Shopify Inc. Meta owns about a bcc bitcoin cash price third of the venture and the rest of it is owned members of the association, according to one of the people. Association members, which include venture capital firms and technology companies, agreed to invest and pay to join when the group was formed, the person added. The controversial cryptocurrency project that Mark Zuckerberg once defended in front of Congress is unraveling after regulatory pressure.

Meta, the company formerly known as Facebook, is one of the founding members of the association. It is intended to be used globally as an easy-to-use, simple, and low-fee currency. This decentralized currency would be functional in the form of digital money on one’s phone.

Statement by Diem CEO Stuart Levey on the Sale of the Diem Group’s Assets to Silvergate

The announcement caps a nearly three-year odyssey on the part of Facebook and its partners to launch a digital currency, which was first dubbed Libra in 2019 until its rebranding as Diem in 2020. The so-called stablecoin — a type of cryptocurrency tied to other kinds of assets — never launched. In 2019, when Meta’s Facebook first unveiled the idea of its stable digital currencies — stablecoins — aimed at revolutionizing global financial services, they did so in collaboration with dozens of other companies. But the consortium wasn’t enough to protect the project from worldwide regulatory scrutiny. After Zuckerberg was called to testify, some partners abandoned the project and it changed its name to Diem.

The Diem Investment Token is, in fact, a security token issued by the Diem Association which, unlike the Diem coin, can, and probably will fluctuate in value. The typical rationale behind a bank run is that a coin is only fractionally backed, and there isn’t enough hard cash to go around if everyone were to decide to cash out at the same time. Diem, on the other hand, is set for day-to-day use, which requires it to have a less volatile nature. That’s why for every Diem created there will be a set of stable and liquid assets backing it.

Silvergate Bank was to be the exclusive issuer of the diem stablecoin as the association underwent a strategic shift to the United States. As we undertook this effort, we actively sought feedback from governments and regulators around the world, and the project evolved substantially and improved as a result. In the United States, a senior regulator informed us that Diem was the best-designed stablecoin project the US Government had seen. Covers financial regulation and policy out of the Reuters Washington bureau, with a specific focus on banking regulators. Previous experience includes roles at The Hill newspaper and The Wall Street Journal. Received a Master’s degree in journalism from Georgetown University, and an undergraduate degree from the University of Notre Dame.

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Since then, the Diem Association and Facebook have both scaled back their ambitions several times. At first, the Libra cryptocurrency was supposed to be a brand new currency tied to a basket of fiat currencies and securities. Diem seems to be just another fiat currency, only this time it’s controlled by corporates and not by central banks.

Currencies that are scalable and secure aren’t truly decentralized, like Ripple and its XRP currency. The initial funding for the reserve will come from founding members of the Diem Association and from users buying the coin once it launches. It will be safeguarded by several different custodians, to avoid centralization risk, and it will be audited periodically. To create products that gently remind people to make the most of every day, as time is fleeting and tomorrow is uncertain. The Diem coin will be implemented as a smart contract that aggregates single-currency stablecoins using fixed nominal weights (e.g., ≋USD 0.50, ≋EUR 0.18, ≋GBP 0.11, etc.).

What Is Diem?

The Diem Association states that in the early development of the Diem network, its founding members are committed to working with authorities and to address all regulatory concerns. Keep in mind that since the reserve is invested in very low risk – low yield assets, it’s planned to make a substantial profit only if the Diemproject were to truly take off. The reserve needs to be large enough to generate substantial profits even from low interest rate investments. The reserve funds I mentioned earlier will be invested in low-volatility, highly liquid assets like bank deposits and government bonds with low default probability and low inflation expectations.

Among these controls was a prohibition on anonymous transactions, which pose both a sanctions and money laundering risk. «Diem is planning to launch the payment system from the USA in a first phase because initially the project will focus on the USA as its target market,» it said. However, some in the crypto industry think that digital innovation around currencies might be best left to the private sector. Diem said it plans to move its operational headquarters from Geneva to Washington, D.C., where its U.S. unit is based.

Buy Libra (Diem) FB coin: Conclusion

Diem is cushioned by many assets, such as most major currencies and instruments of government debts. The Diem Association, a cryptocurrency initiative once known as Libra backed by Meta Platforms Inc., is weighing a sale of its assets as a way to return capital to its investor members, according to people familiar with the matter. The Diem saga started in 2019 when Facebook announced a new digital currency called Libra. Facebook wanted to create a simple global payment system and empower billions of people who don’t have access to traditional financial systems.

Meanwhile, tether, a controversial stablecoin, is currently worth over $57 billion, according to CoinMarketCap data. The Diem Association, which oversees development of the Diem digital currency, had been pursuing a payment system license with Switzerland’s FINMA watchdog. Diem has now dropped plans to secure Swiss regulatory approval, while its U.S. subsidiary has partnered with Silvergate, a California state-chartered bank, to issue the token. Diem said in May that an affiliate of the firm, Silvergate Bank, was to be the issuer of the Diem USD stablecoin, a type of cryptocurrency pegged to the U.S. dollar that’s typically used to buy and sell other crypto.

Silvergate has a similar mission to expand global payment options and will issue its own stablecoin to execute it. All investments come with inherent risks, and cryptocurrencies are no exception. Cryptocurrencies can even come with more risk than some traditional investments.

Unlike bitcoin, which uses a public ledger system and isn’t controlled by any single authority, Diem’s technology will be open to only a few participants, such as Facebook and other members of the Diem Association. Stablecoins are also designed to avoid the price volatility seen in cryptocurrencies like bitcoin. The Diem Association, a consortium of companies working on a blockchain-based payment system, is selling its technology assets to Silvergate Capital for $200 million, according to a report from the WSJ.

For example, commercial companies need to have more than $1 billion in market value, reach over 20 million people a year and be recognized as a top 100 industry leader. But money and computing power aren’t enough to join the Diem association as a founding member. Facebook also set up a subsidiary called Novi Financial Inc. which is currently developing the first Diem wallet now called Novi. This post covers how the coin works, who controls it and what you should be aware of before buying it.

• Diem (formerly Libra) is a cryptocurrency project pioneered by Facebook, that is presumed to launch sometime in early 2022.
• Discussions are early, the people cautioned, and there’s no guarantee Diem will find a buyer.
• Our young and dynamic team is comprised of well-known journalists as well as Cryptocurrency & Blockchain Experts.

Discussions are early, the people cautioned, and there’s no guarantee Diem will find a buyer. But the status of the project became unclear in recent months as updates were fewer and fewer and top talent departed the Diem Association, including top exec David Marcus at the end of 2021. Move was the Diem blockchain’s proposed smart contract and custom transactions language. It was planned to be a statically-typed programming language, compiled to bytecode. The Diem Association (originally the Libra Association) shut down in January 2022 and sold the project to Silvergate Bank.