By Laura Sanchez
- The Diem Association aims to launch a pilot project with a single Fixed currency pegged to US dollar in 2021, As he described Cnbc Close to a source project.
- Formerly known as Tula, the Facebook-backed Digital Currency Project (NASDAQ 🙂 faced stiff opposition from regulators. And lost several major sponsors and officials.
- At the same time, Diem has gone through a complete transformation and is now negotiating with Swiss financial regulators Getting paid license.
Investing.com – Facebook wanted to revolutionize finance with a global digital currency; Then came the regulators. First proposed as Tula in June 2019, the token was initially considered a universal currency, a basket of sovereign currencies such as the US Dollar and Euro.
But after stiff opposition from regulators around the world, LThe organization overseeing the project lost major sponsors including Visa (NYSE 🙂 and MasterCard (NYSE :).
The group eventually watered down its plans, which for several “stable stocks” backed by different government-backed currencies, as well as a multi-currency coin.
Now known as Diem, the Facebook-backed digital currency is expected to launch later this year, albeit in a much more limited form than the original Libra idea.
Stablecoin Pilot Project
The Diem Association is a Swiss-based non-profit organization that oversees the development of Diem, Aims to launch a pilot with a single fixed currency in 2021 with US dollars, according to Cnbc A person familiar with the case.
The source, who preferred to remain anonymous as details have not yet been made public, said This pilot project will be small scale and primarily focused on transactions between individual consumers.
Users may also have the option to purchase and purchase goods, Add this font. Although the coin is expected to be ready by the end of the year, there is no officially confirmed date yet.
“It’s really deviated from the radar in a way that’s quite surprising,” he said. Cnbc Michael Casey, director of content at cryptocurrency publication CoinDesk and a former financial journalist.
Diem came under intense scrutiny when he was first introduced. Given Facebook’s wide reach (it had 2.8 billion monthly active users in the fourth quarter of 2020), central bankers and politicians feared the currency could threaten monetary stability and potentially allow money laundering . Facebook’s involvement also meant there were concerns about how it would protect users’ privacy.
“It was such an impressive challenge to the international system that the response was really powerful,” says Casey.
The Diem Association has lost many members and officials almost two years after its initial introduction.
Visa, MasterCard and Stripe were some of the first companies to withdraw from the association. They were followed by PayPal (Nasdaq :), eBay (NASDAQ 🙂 and Vodafone (Loan :).
Ran Goldy, CEO of Digital Assets, explains, “Diem’s technology has changed dramatically over the past year and from an inexperienced blockchain to a very sophisticated blockchain you can see a year and a half ago. The group, which allows merchants to pay Is building the infrastructure to be accepted as.
“I think it will go forward this year,” said Michael Grongar, CEO of blockchain analytics firm Chainalysis. “It would be a wrong chance if not.”