Facebook’s Diem has been flailing for two years. According to Bloomberg, the association behind the stablecoin may be throwing in the towel.
Diem Association (formerly known as Libra Association), the stablecoin project started by Meta (formerly known as Facebook), may soon be known as “abandoned.”
The association—led by Facebook and a smattering of financial firms, venture capitalists, and aid organizations—is contemplating selling off its intellectual property and other assets “as a way to return capital to its investor members,” according to a report by Bloomberg.
Any sale, which has not been confirmed by Diem or Facebook, would likely spell the end of Facebook’s cryptocurrency ambitions, at least in the short term.
Announced in 2019 to both fanfare and confusion, Libra was meant to be a stablecoin tied to a basket of global currencies. The coin’s construction meant that rather than mirroring the value of the U.S. dollar, as Tether or USDC does, Libra could almost become its own global currency—managed by the Libra Association.
U.S. regulators weren’t thrilled. Within months, pressure from regulators and lawmakers caused prominent Libra Association members to bail on the project. In a single day in October of that year, eBay, Stripe, Mastercard and Visa all resigned as founding members, following PayPal’s lead the week before.