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Diem Association To Launch Its Pilot For US Dollar-Backed Stablecoin Later This Year

The Diem Association has intended to launch its pilot for a United States dollar-backed stablecoin later this year. 

It has been reported that the association had already announced its plans for a limited launch of a US-dollar stablecoin in January, yet as the months have since passed, the currency is yet to see the light of day. 

However, Diem’s stablecoin is a significantly scaled-back and rebranded version of Facebook’s initial vision for a global digital currency, native to its platform, which would be tied to a basket of multiple fiat currencies.

Aside from shedding the name Libra, commentators have pointed to the thoroughgoing changes to Diem’s evolving project in response to a striking pushback from global regulators and nation-states. 

Ran Goldi, the CEO of First Digital Assets Group, said that Diem’s underlying technology has “changed dramatically over the past year and a half from a naive blockchain to a very sophisticated blockchain that you can see is trying to answer some of the questions that regulators had.”

Leak: Facebook-backed digital currency project Diem could launch its first stablecoin in 2021. The pilot is expected to focus on transactions between individual users. — Cointelegraph (@Cointelegraph) April 20, 2021

First Digital Assets Group is currently building infrastructure for merchants to facilitate Diem’s use as a means of payment.

In the meantime, Diem continues to await regulatory approval and the granting of a payments license from the Swiss Financial Market Supervisory Organization.

Thus, Michael Gronager, the CEO of Chainalysis, said:

“I think it [Diem] will get past the gates this year. It would be a missed opportunity if not.”

Source: Cointelegraph | Image: CGTN



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