Meta Launched Cryptocurrency Project Diem May Be Sold Under Heavy Regulatory Pressure

Diem (formerly Libra), the cryptocurrency project launched by Meta Platforms Inc (NASDAQ:FB) (formerly Facebook), is considering a package sale of its underlying assets to refund early investors' investments after encountering regulatory resistance, media reported on Wednesday.

Media reports say that pressure from the Federal Reserve on Silvergate, the bank with which Diem planned to launch its digital token, was the "final straw" that broke Diem's back. Michael Crittenden, a spokesman for cryptocurrency project Diem, accused the media report of being full of "factual errors" but declined to comment further.

If Diem eventually confirms it will sell its assets, it would mean the project has lost its way forward. In its initial white paper, Libra was intended to be a digital currency backed by a basket of currencies including the U.S. dollar, the British pound and the euro.

However, Libra's plans have drawn concerns from national regulators who fear that Libra could challenge countries' financial sovereignty and financial stability.

Currently, Diem aims to launch a digital currency anchored to a single U.S. dollar.