What could have been a global game changer is now dead. More than two years after its launch in 2019, Meta announced it is shutting down its stablecoin project Diem. The project aimed to leverage blockchain technology by creating a global-wide currency and an inclusive payments system.
Meta, formerly known as Facebook, has decided to sell Diem assets to Silvergate bank after it became clear to the association that the project will not get a green light from federal regulators who have questioned and criticized the project for concerns over alleged money laundering as well as its financial stability. Diem assets were sold for US$200 million to the digital-currency-focused bank.
Stuart Levey, Diem Association and Diem Networks U.S. CEO, said in a statement, “We remain confident in the potential for a stablecoin operating on a blockchain designed like Diem’s to deliver the benefits that motivated the Diem Association from the beginning.” He added that Silvergate is well-placed to take Diem’s vision forward.
In related news, Block Inc. CEO and Twitter founder Jack Dorsey criticized Meta for the failed Diem project. At the recent Microstraegy World Conference, Dorsey said the company should have focused on advancing BTC.
“They tried to create a currency that was owned by Facebook – probably for the right reasons, probably for noble reasons, but there were also some reasons that would indicate trying to get more and more people onto the Facebook ecosystem,” Dorsey said, adding that Meta could have spent years making Bitcoin accessible for more people worldwide.
Meta also announced it had joined the Crypto Open Patent Alliance (COPA), a consortium of tech and digital currency companies led by Dorsey with a goal to encourage blockchain-related innovation. Meta holds the largest patent portfolio among other members of the alliance.
Meanwhile, here’s a rundown of the latest industry updates from around the world.
China begins its plan to carry out its pilot test of blockchain technology application. Including the Cyberspace Administration, the economic giant has selected 16 departments and 164 other entities that will use blockchain in “facilitating data sharing, optimizing business procedures, lowering costs, improving synergy and building reliable systems.” The test also covers various industry groups, companies, health facilities, and universities.
India’s plans to launch a digital version of its currency is now projecting the country to be one of the world’s largest economies to launch a central bank digital currency (CBDC). If the plan pushes through, it is believed that the CBDC will be released on April 1, the beginning of the fiscal year 2022-2023.
The country will also impose a 30% tax on income gained from digital assets, according to finance minister Nirmala Sitharaman. India joins the growing list of countries planning to issue their own CBDCs.
In Thailand, authorities nixed the planned 15% tax on digital currency transactions after strong opposition from traders. On Monday, tax officials explained that digital currency trading and mining earnings could be reported as capital gains on income tax.
However, the Bank of Thailand and its finance ministry will issue regulatory guidelines to restrict digital currency payments in the country. The government departments said digital currency payments do not serve benefits to businesses and users, although they encourage and support the development and growth of financial sectors with the use of blockchain technology.
Speaking of blockchain use cases, the world’s largest public blockchain by all major utility metrics: data storage, daily transaction volume, scaling ability, and average block size BSV blockchain will be at the center of the inaugural BSV Global Blockchain Convention.
In partnership with CoinGeek, the blockchain convention will kick off in Dubai from May 24 to 26 at the Grand Hyatt Hotel. The three-day event brings together thinkers, developers, and leaders in the industry, where attendees can expect expert panels, product launches and major announcements on BSV Blockchain.
More on this sector, BitcoinSV.com released the first batch of over 50 tools and libraries to help developers build, test, and deploy their applications on the BSV blockchain. The tools and libraries include APIs, Bitcoin Scripts, tokens, smart contracts, testing, and wallet SDK. Visit BitcoinSV.com to learn more.
This week’s episode of the CoinGeek Backstage features advertising industry leader and television personality, Donny Deutsch. He talked about how branding and marketing can work effectively with technology like the blockchain. Head to the CoinGeek Youtube channel to watch this interview and more exclusive videos.
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.
