Diem returns to the USA
More than two years ago, Facebook went public with its controversial stablecoin projects. These have not yet been implemented, but the project is now turning its back on its homeland.
The Diem Is About To Change Course Again
The organization announced this in a press release in May. Actually, Diem wanted to launch the stablecoin linked to the US dollar in Switzerland. It has now withdrawn the app to the regulatory authority. Instead, efforts will be made to become a member of the US FinCEN.
Diem justifies the move to the USA with the changing crypto currency regulatory in the country. CNBC reported that the headquarters will be located in Washington.
Diem Cooperates With Silvergate
In the course of the partnership, Silvergate, known for its crypto affinity, is responsible for issuing and managing the stablecoin reserves. The network however, will be responsible for the operation of the payment infrastructure. Unlike Bitcoin, Diem does not run on a public, but on a permissioned blockchain. Access to the stablecoin is therefore only given to authorized participants. It is still unclear when the stablecoin will see the light of day. Rumor has it that a Diem project is scheduled to start this year.
Facebook's stablecoin has been in development since 2019. Diem has since attracted displeasure from government officials around the world. The draft envisaged an available means of payment that should be secured by a whole basket of different currencies. At that time, it was also able to assemble a considerable selection of financial providers, many of whom have since turned their backs on the project.
The contents of this article are for informational purposes only and are not investment advice.