Mark Zuckerberg, the CEO of Meta Platforms (FB), had great aspirations for the stablecoin initiative, but unfortunately, the future appears to be bleak. Notably, the stablecoin is a cryptocurrency with fixed pricing to avoid price swings during transactions.
Unveiled in June 2019, the initiative named Libra Association was backed by Meta Platforms (earlier known as Facebook), and eventually rebranded as Diem in December 2020. The project’s major goal was to use reliable digital money to revolutionize global financial services.
Reportedly, The Diem Association is now intending to sell its assets in order to repay funds to its investment members.
Unfortunately, the Diem initiative has had a hard road from the start, due to regulatory constraints and backlash from all sides. The matter became worse when federal regulators stated in November 2021 that Stablecoin issuers should be banks, not large enterprises, if the tokens are to be used as a way of buying and selling things. The purpose was to avoid economic power concentration.
It would be fascinating to see whether Diem is able to find a suitable buyer and effectively sell this project without experiencing significant losses.
Square (SQ) CEO Jack Dorsey recently teased Zuckerberg about this twist, tweeting “carpe diem,” a Latin aphorism that roughly translates to “seize the day.”
On a brighter note, Meta Platforms’ monthly user numbers indicate that the social media business will report strong Q4 2021 earnings after the market closes on February 2. According to TipRanks’ new tool, which measures monthly website visits, total estimated visits to facebook.com have increased by 1.75% sequentially in Q4.
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