Facebook’s Diem Association Focuses on the United States

The supported by Facebook Diem Association revealed his intention to launch a US dollar backed stablecoin as he focused on the US. Formerly known as Facebook’s Libra association, Diem was supposed to create a single stablecoin backed by a number of global currencies. After facing a ton of repression from regulators around the world, the association changed his plans and decided to create a payment network in which the coins are linked to a variety of local currencies. Today, Diem is reviewing his plans even more and has took of its application for a Swiss payment license from the Swiss financial regulator FINMA.

Diem had previously said it would not be launched until it got the FINMA blessing, but that is clearly no longer the case. It moved its main activities from Switzerland to Washington, DC and partnered with the California-based Silvergate Bank. Silvergate will be the exclusive issuer of the Diem USD stablecoin and run its blockchain-based payment system. This move is a big step forward towards the launch of the Diem USD pilot, which CNBC said it could happen later this year. Diem is expected to launch a small-scale pilot project focusing on transactions between individual consumers.

Diem CEO Stuart Levy said that while the association no longer requires a license from FINMA, “the project has benefited greatly from the intensive licensing process in Switzerland and the constructive feedback from FINMA and more than twenty other regulatory authorities around the world “.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through any of these links, we may earn an affiliate commission.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *