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Facebook abandons digital currency project DEEM

Facebook-owned Meta Group has officially unveiled its digital currency project amid a media uproar in 2019.

The DEEM Foundation, which was working on the project, plans to sell its core assets and withdraw completely from the project due to a failure to convince regulators of it.

 

DEEM will sell the company’s intellectual property rights and other assets for $182 million to cryptocurrency bank Self-based Capital Corporation.

The social giant had fought virtual currencies with the launch of Libra in 2019, which would have introduced a new payment method outside of traditional banking circles.

 

Aware of regulators’ concerns about a currency operated by a private company, the U.S. group then decided to entrust its management to an independent entity based in Geneva, Switzerland, initially dubbed Libra.

 

This initiative was on track, but “it became clear during our discussions with U.S. authorities that the project could not progress any further,” Foundation Director General Stuart Levy said.

 

“The idea of Facebook making cryptocurrency has panicked everyone,” analyst Rob Enderle of Inderle Group told AFP.

 

“For regulators, it has gone too far, as they have openly declared that they do not trust Facebook in this project.

 

Basically, Facebook envisioned a new payment method that would allow goods to be bought or money sent as easily and quickly as sending an instant message, but since its launch the project has drawn heavy criticism from central banks, regulators and policymakers alike.

 

They have expressed concern about risks to the stability of the financial system, combating money laundering or protecting personal data.

 

The idea that Facebook is seeking to mint money in the same way as central banks has also angered many regulators.

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