Will Facebook Have Its Own Currency?

Two years ago we told you about the attempts of Facebook to create the stablecoin. Get back to it if you haven’t heard of Libra or Diem before. Long story short — the project faced a lot of difficulties on its way to taking place along other cryptocurrencies.

By the time Diem was introduced to the world and crypto community, Facebook had global plans on creating a single currency that will replace any other crypto payment methods. Unfortunately, politicians didn’t quite approve this plan and covered it with a massive wave of criticism. Regulators were afraid that Diem would ruin the authority of central banks and use the ability to make money in its favor (to control and protect markets). They also were worried that a single currency would be used to launder the money.

Diem is shutting down

A few months ago the Diem project was shut down. The Diem Association created by Facebook in order to manage digital tokens sold off all of the assets. The Federal Reserve Fund buried the project completely when put more pressure on Silvergate, a Diem’s partner, which helped the Association to launch cryptocurrency during 2021. Michael Crittenden, the Diem Association member, mentioned some unspecified factual mistakes in the project’s report, but also refused to give any more comments.

January 2022 became the last month for the project. Then, it was officially closed. The Association has sold off all the intellectual property and assets to Silvergate Capital Corporation. Diem has confirmed this information in its official Twitter account. Silvergate is planning to invest in this platform and enhance the already existing stablecoin. This will get Silvergate a chance to use the technology and take part in the race of cryptocurrency leaders.

Surely, some of you could guess from the very beginning that Diem will not be released. David Marcus, one of Facebook's directors and Diem's promoters, quit the company at the end of 2021. Most of the crypto project’s team members have left. However, Mark Zuckerberg may have given up on Diem, he is still exploring the modern financial industry.

Zuck bucks

Facebook changed its name to Meta in October 2021. After that, it created the digital wallet, which firstly was mentioned for Diem tokens, but in the future may serve to store some other currency. Its official name and release date were not announced yet, but inside the team they call it Zuck bucks.

Nowadays Meta’s also planning to enter the NFT-party using its 2 core products — Facebook and Instagram. Apparently, they are setting up a full marketplace built into the social networks. Due to the future service, users will be able to buy and sell NFTs. It is clear that the project has very ambitious plans, but only time will tell if they will come to fruition.