Diem, the Facebook-backed cryptocurrency, will launch as a stablecoin later this year, according to CNBC
Proposed for the first time in June 2019 Under the Libra name, the Facebook-backed cryptocurrency has undergone all sorts of changes. Two years later it seems that he finally has release date, under his new name Diem.
According sources consulted by CNBC, the association behind Diem has planned launch a pilot program by the end of the year. This pilot program will have a special focus on people-to-people payments and it will be a small-scale launch to test the service.
Diem it will be essentially a stablecoin. This means that its value will not fluctuate according to the interest of users but will be tied to the value of a fiat currency backed by a state. Diem plans to be a payment network between users and companies where the value of the digital currency will be the same as the currency of the country in which it operates. For example, a diem in the United States will have the same value as the US dollar, a diem in the United Kingdom will have the value of the English pound.
The Diem Association, the Swiss-based nonprofit that oversees the development of diem, has no confirmed release date yet, CNBC learns. Diem is now in talks with Swiss financial regulators to obtain an operating license.
The main problem Diem is facing is the possible money laundering that can occur with digital currency. It is something that has concerned regulators, as it is a currency not controlled by the state but by a group of companies. This will largely depend on how each partner decides to implement Diem in their systems. That is, it will depend, for example, on Facebook if using Diem on its platform is something private or not for the user.
A radical change in brand and strategy
Diem is the name given to a cryptocurrency created by an association of technology companies among which Facebook stands out as the main driver. After the notices from various regulators several companies they left the ship, which caused a radical change in its structure to be more of a PayPal-like service than Bitcoin.
After these changes came the change of brand. We first saw how Facebook changed its wallet Calibra by Novi. Months later, at the end of 2020, Libra announced that was renamed Diem. New name and new strategy for arrive very differently from how it was originally presented.
Via | CNBC