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Meta's Diem Stablecoin Payment System is Officially Dead

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@l337m45732
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Facebook Meta has been trying to build it's own stablecoin and payment system for years now. After facing numerous problems and rebranding to no avail... It seems they are throwing in the towel.

The Rise and Fall of Diem

It's hard to even call it a rise to begin with because there never really was a working platform. Diem was originally called Libra and was being built by Facebook(now Meta) to serve as a centralized payments platform built on Diem's own open-source blockchain. The purpose is to serve as a global, instant, and cheap payments platform that supports multiple different Diem Stablecoins all supposedly backed by cash reserves and "short term government securities".

They've faced multiple issues along the way such as scrutiny from the SEC adn regulators. This caused them to shift from the original play for have one single stablecoin backed by a basket of assets to individual stablecoins backed by single national currencies. They built a blockchain that could supposedly handle billions of people using it for financial transactions.

The powers that be really didn't like the idea of an alternate financial system with that kind of network effect from the likes of Meta. This is more than likely why they faced such opposition from regulators because literally billions of people could opt to use this payments systems instead of the existing regulated systems. Why anyone would actually use a payments platform built by Meta is beyond me, but there was clearly a market for it. This thing was years in the making and they were showing no signs of giving up. With Meta's shift in direction to metaverse focus first, it just made sense for them to keep chugging along. Until now.

According to an article that came out yesterday, Diem is looking to liquidate assets and return funds to investors. Big oof. There were a lot of investors and a lot of money invested from companies like Coinbase and Spotify(lol). Despite having all this capital backing, it looks like they are throwing in the ole towel. Damn, you mean Meta couldn't make it happen? Ole Zucky Zuck couldn't pull off creating a global payments network that runs on blockchain without getting slapped on the wrist repeatedly by regulators? I thought he was a lizard-robot hell-bent on taking over the financial systems of the world. The real question is if they will even find a buyer to liquidate their assets. Wouldn't it be crazy if their assets were bought by a large company like Binance? They might be able to actually do something with what has already been built.


Posted Using LeoFinance Beta