Meta has given up on issuing its own stablecoin

The company will sell the rights to the Diem crypto project for $200 million

03.02.2022 - 09:40

389

1 min

What’s new? Meta has abandoned the idea of creating its own stablecoin, The Wall Street Journal reports. Created in 2019, the Diem crypto project will be sold for $200 million. Diem CEO Stuart Levey states that the project initially faced “pushback from regulators and legislators.”

The Wall Street Journal’s material

What was the Diem project? Levey says that the project was designed as a more inclusive payment system, but “it soon became clear from our dialogue with federal regulators that the project could not move ahead.” Levey still believes in the potential of a stablecoin and hopes to continue working on it together with a future buyer of the project.

Diem CEO added that one of the “highest priorities” for the team was to create controls to protect against misuse by malicious actors.

“We addressed that concern in ways that are novel in the industry, implementing numerous controls that were recognized as innovative by regulators. In the United States, a senior regulator informed us that Diem was the best-designed stablecoin project the US Government had seen.”

Author: