Digital currency group Diem Association, formally known as Facebook Inc.’s Libra project, plans to launch a US dollar stablecoin as it scales back its global ambitions to focus on the US.<\/p>\n
The association, which comprises 26 financial companies and non-profits, said it was relocating its main operations from Switzerland to the US and withdrawing its payment system licence application with the Swiss financial regulator.<\/p>\n
Diem Networks US, a unit of the Deim Association, will run a blockchain-based payment system that allows real-time transfer of Diem stablecoins and will register as a money services business with the US Department of the Treasury’s Financial Crimes Enforcement Network, the group said.<\/p>\n
Stablecoins are digital currencies pegged to a fiat currency. California-based Silvergate Bank will issue the Diem USD stablecoin and manage the Diem USD reserve. Diem said it would launch a pilot of the stablecoin, but it did not say when.<\/p>\n
“We are committed to a payment system that is safe for consumers and businesses, makes payments faster and cheaper,” the association said.<\/p>\n
Facebook first unveiled plans for Libra in June 2019, part of an effort to expand beyond social networking into e-commerce and global payments. It said Libra, alongside partners like payment firms and credit card companies, would create a digital token backed by a wide mixture of currencies and short-term government debt.<\/p>\n
The social media giant said it hoped Libra would power transactions between consumers and businesses around the globe, and offer more people access to financial services.<\/p>\n
But the project immediately ran into fierce opposition from policymakers globally, who worried it could erode their control over the money system, enable crime, and harm users’ privacy.<\/p>\n
In April 2020, Libra and its partners abandoned plans to hold a basket of currencies and sovereign debt, in favor of stablecoins backed by major currencies and sought the Swiss regulator’s approval.<\/p>\n
In December, Libra rebranded as Diem in a renewed effort to gain regulatory approval, with its scope scaled back further to a single dollar-backed digital coin.<\/p>\n
Currently, Facebook’s digial wallet Novi is one of Diem’s 26 members and a minority investor.<\/p>\n","protected":false},"excerpt":{"rendered":"
Digital currency group Diem Association, formally known as Facebook Inc.’s Libra project, plans to launch a US dollar stablecoin as it scales back its global ambitions to focus on the US. The association, which comprises 26 financial companies and non-profits, said it was relocating its main operations from Switzerland to the US and withdrawing its payment system licence application with the Swiss financial regulator. Diem Networks US, a unit of the Deim Association, will run a blockchain-based payment system that allows real-time transfer of Diem stablecoins and will register as a money services business with the US Department of the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-798446","post","type-post","status-publish","format-standard","hentry","category-it-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/798446","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=798446"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/798446\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=798446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=798446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=798446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}