Facebook’s Stable-coin project, Diem, has announced that it will launch a stable currency pegged to the US dollar only.
The project, formerly known as ‘Libra’, involved the global launch of a stable currency that was to be pegged to a weighted basket of international currencies.
However, disagreements with regulators around the world have resulted in several significant shifts in direction in recent months, with the latest announcement leading to a change in the setting of its ambition.
Diem, the Facebook Subsidiary that leads the project, announced that it is moving its headquarters from Switzerland to the United States and will withdraw its payment system license application from the Swiss tax authorities.
A test launch of the stablecoin is planned for Silvergate Bank in California, although Dim has yet to confirm when the offer will begin.
Plans to release Facebook’s stablecoins, or Libra at the time, were unveiled in June 2019 as part of the company’s strategic ambitions to enter the global payments market.
It was hoped that Libra would enable business-to-consumer transactions as a form of initial digital payment for the Facebook ecosystem.
With the changed strategy of having USD stable currency, Diem will move to the domestic market in an attempt to garner support in space.
Latest posts by News Desk (see all)
- FBR asked to enhance efforts for Broadening Tax Net - May 27, 2023
- National Savings Rate for June-2023 - May 27, 2023
- Islamabad to get a new “Luxury Resort” - May 27, 2023
