- Peru's ex-president Toledo gets 20 years for corruption
- Chile launches vaccine that neuters dogs for a year
- Toxicology tests show Liam Payne had 'multiple' drugs in system: reports
- WNBA players union opts out of deal, now set to end in 2025
- Harris woos on-the-fence Republicans, Trump tours storm damage
- Henderson howler hands Forest victory over Crystal Palace
- Yankees and Dodgers to renew epic rivalry in World Series
- Stock markets mostly slide, oil jumps as China cuts rates
- Parents of Venezuela minors held after election ask UN to intervene
- NBA and Nike extend partnership deal for 12 years
- Israel strikes 300 Hezbollah targets as US urges war's end
- Tourist dreams turn sour after Cuba lights go off
- Italy PM seeks to save Albanian migrant deal amid spat with judges
- Tagovailoa returns to NFL practice Wednesday after concussion
- US infant mortality spiked after right to abortion overturned: study
- Blinken back to Middle East to push for Gaza truce
- Neymar returns for Al Hilal in Al Ain thriller
- TGL set for January start as Woods-McIlroy might meet Jan. 27
- US Grand Prix - three things we learned
- Welsh rugby's future more important to Gatland than saving his job
- Venezuela arrests ex-oil minister accused of US links
- President Biya lands back in Cameroon after health rumours
- Watson out for NFL season with ruptured Achilles tendon
- Disney expects to name Iger's successor in early 2026
- Emery wants to 'break barriers' at transformed Aston Villa
- Hezbollah-linked financial firm an economic lifeline for Lebanese
- London trial probes 2015 Brazil mine disaster
- Police in Mozambique disperse vote protest
- Ancelotti wants goals over pressing from Madrid star Mbappe
- Major crypto, diamond fraud trial opens in France
- Electricity restored to 50% of Havana after nationwide blackout: Cuba state media
- How much aid is getting into Gaza?
- King Charles caps Australia trip with Opera House bash
- England's Buttler out of West Indies ODI series
- Moldova president hails EU referendum win after Russia meddling claims
- Van Dijk talking to 'right people' over Liverpool contract
- Vietnam's top leader pushes anti-corruption fight
- Arteta urges Arsenal to use Bournemouth 'pain' against Shakhtar
- Rabada fastest to 300th Test wicket, as Bangladesh all out for 106
- Erdogan rival Gulen dies in exile at 83
- Man Utd's Ten Hag relishing Europa League clash with Mourinho
- Amnesty says migrant workers exploited at Carrefour Saudi stores
- Fethullah Gulen: ex-Erdogan ally who became public enemy number one
- Seoul demands 'immediate withdrawal' of North Korean troops in Russia
- WHO to evacuate 1,000 Gazan women, children for urgent medical care
- Erdogan's rival Fetullah Gulen dies in exile aged 83
- Gauff-led USA pitted with Canada at season-opening United Cup
- Sanofi pursues sale of painkiller after political controversy
- Rabada takes 300th wicket as Bangladesh stumble to 60-6 at lunch
- Alpacas, hecklers and climate warnings: King Charles visits Australia's capital
RBGPF | 1% | 61.11 | $ | |
JRI | -0.53% | 13.15 | $ | |
BCC | -2.78% | 137.9 | $ | |
NGG | -1.45% | 67.03 | $ | |
RYCEF | -0.68% | 7.4 | $ | |
CMSC | -0.53% | 24.65 | $ | |
SCS | -0.93% | 12.89 | $ | |
CMSD | -0.68% | 24.87 | $ | |
RIO | -0.63% | 64.95 | $ | |
RELX | -1.13% | 47.63 | $ | |
BCE | -0.45% | 33.39 | $ | |
VOD | -1.35% | 9.63 | $ | |
AZN | -1.06% | 77.44 | $ | |
GSK | -1.02% | 38.16 | $ | |
BP | 0.44% | 31.47 | $ | |
BTI | -0.73% | 34.25 | $ |
Facebook's crypto project Diem sold after pushback
The Facebook-backed digital currency project Diem announced Monday the winding down and $182-million sale of its technology, capping a years-long initiative that drew significant concern from regulators.
Facebook's announcement in 2019 of plans to design a cryptocurrency and payment system raised immediate red flags for global finance officials, who expressed a barrage of criticism about the security and reliability of a private network.
Diem Networks' US CEO Stuart Levey said in a statement that the initiative made progress, but "it nevertheless became clear from our dialogue with federal regulators that the project could not move ahead."
"Over the coming weeks, the Diem Association and its subsidiaries expect to begin the process of winding down," the association's statement said.
The technology was bought by Silvergate Capital Corporation in California that is a go-to for crypto projects, and which put the sale price at $182 million.
Silvergate bought development, deployment and operations infrastructure, as well as tools for running a blockchain-based payment network for payments as well as cross-border wire transfers.
- Crypto boom -
"As we undertook this effort, we actively sought feedback from governments and regulators around the world, and the project evolved substantially and improved as a result," the Diem association's statement said.
Pressed by regulators' concerns about a currency managed by a private company, the project was previously entrusted to an independent entity based in Geneva.
After the defection of several major partners such as PayPal, Visa and Mastercard, the organization scaled back its ambitions, before renaming itself Diem at the end of 2020.
The so-called stablecoin -- a type of digital money tied to other kinds of assets -- never launched.
"The combination of a stablecoin issuer or wallet provider and a commercial firm could lead to an excessive concentration of economic power," US regulators said in a 2021 report.
"These policy concerns are analogous to those traditionally associated with the mixing of banking and commerce, such as advantages in accessing credit or using data to market or restrict access to products," it added.
Facebook, which renamed itself Meta in October, has faced criticism on the dominant position it holds online, yet it's not the only powerful organization interested in crypto.
The European Central Bank in July formally launched a pilot project to create a "digital euro," in response to the growing popularity of electronic payments and the rise of cryptocurrencies.
Central banks are also responding to increased demand for digital payment options as cash use continues to decline, a trend fueled by the pandemic and the desire to avoid contact.
H.Silva--PC