Facebook’s new Stablecoin targets ‘grand comedown’ of Grand Libra plans

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Source: Adobe / Ascannio

Once heralded as the future of global finance, it seems the Facebook-LED Diem project (formerly Balance) is now set to launch in the United States as a USD pegged stablecoin.

In a press release, Facebook and its partners Diem ad that he would team up with the American crypto player and the chartered bank Silvergate and do what he called a “strategic shift to the United States”.

The deal will see Silvergate issue Diem’s ​​token and manage the group of companies’ fiat USD reserves. But while the Diem Group claimed it was still working on plans to develop a global payments network, media outlets such as Bloomberg agreed that the pivot towards the American market marked the passage of a “simpler” option with “smaller” ambitions. The report called the move “a big decrease in the vision unveiled by the Libra Association in 2019.”

Diem claimed his new project could target the central bank’s rapidly growing digital currency (CBDC), adding that he hoped to be able to reduce the cost of sending money around the world with Diem tokens or CBDCs.

The group added that “preparations for a Diem USD pilot” were underway and claimed that Diem Networks US would operate what it called the Diem Payment Network, an “authorized blockchain-based payment system that facilitates payment. real-time transfer from Diem. stablecoins among approved network participants. “

The group added that it was “simplifying its plans to issue Diem USD stablecoins” with its decision to “move its main operations from Switzerland to the United States.” He further claimed that the move was “in line with Diem’s ​​original strategic direction on the United States” and “reflected Diem’s ​​consideration of the evolving regulatory environment for digital currency in the United States” .

And the withdrawal from Switzerland – one of the most leniently regulated crypto industry hubs in the world – appears to be final. The group wrote that Diem was “withdrawing his payment system license application” from the settlement. Swiss Financial Markets Authority (FINMA).

In 2019, it emerged that the big tech-driven stablecoins were ready to take over the world of global finance, along with Facebook and Russia. Telegram looks set to face off in a battle for digital financial dominance fueled by blockchain. Dozens of leading partners climbed on board.

But after intervention by US regulators, courts and politicians, Telegram’s bid to launch its TON network was totally derailed, along with the company still in shock financial blow. And with Facebook supremo Mark Zuckerberg and other Facebook executives dragged to parliamentary committees to face grills Against the furious lawmakers, the Libra-era partners then set up their center of gravity in Switzerland.

But many of these partners has cold feet, with many heavy hitters eventually dropping out.

And embarrassing name change quarrels seemed to suggest that everything was not going according to plan – and after months of relative silence, it looks like Facebook and its friends are now set to make a much quieter foray into the stable room space.

In April, CNBC reported that Diem Association aims to launch a pilot project with a single USD-indexed stablecoin in 2021. The pilot will be small-scale, focusing largely on transactions between individual consumers, and there may also be an option for users to buy goods and purchases.

Either way, maybe Zuckerberg lost his cravings for stablecoins and thrived. a taste for bitcoin instead?
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Learn more:
3 reasons why Facebook should buy and hold Bitcoin
Prepare for an ‘uncertain future of money’ – US Intelligence Center
Why this Bitcoin-believing start-up is betting on Facebook’s Diem instead

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