Facebook: Meta's crypto dreams officially over

Facebook's objective of designing its own worldwide coin has eventually ended.

The Meta-backed cryptocurrency known as Diem is calling it quits after various rebrands, congressional hearings, and several high-profile staff layoffs.

Diem Association, which is funded by Meta Platforms Inc, has sold its assets to cryptocurrency-focused bank Silvergate Capital Corp. Silvergate stated that it paid $182 million for Diem's intellectual property and other assets.

The sale marked the end of several years of difficulty for Meta's fintech division, which had lost most of its leadership, including director David Marcus, in the fall as a result of a staff exodus.

It also directly contradicts Meta's aspirations for commerce in the metaverse, a futuristic digital environment termed "the successor to the mobile internet" by CEO Mark Zuckerberg.

When the Diem project was first announced in 2019, it was initially branded as Libra. Regulators fear that Facebook will have too much power over the money system and infringe on users' privacy.

In order to gain regulatory approval, Facebook renamed both the digital coin and the wallet it was developing to execute transactions, known as Novi.

Meta is testing Novi in Guatemala and the United States with the stablecoin Pax Dollar, despite opposition of US politicians who claim the business cannot be trusted to control cryptocurrency.