Diem Association to roll out its first stablecoin

Diem, the digital currency project backed by Facebook, could have its first stablecoin this year as a small-scale pilot program.

An anonymous source cited by CBNC in a report claimed that the non-profit Switzerland-based The Diem Association still intends to launch a U.S. dollar-backed stablecoin this 2021.

It can be recalled that back in November last year, the association had already announced the same plan to materialize in January, but up to this time, the supposed currency has yet to see the light of day.

What’s the Diem Association stablecoin?

The stablecoin of Diem is a heavily scaled-back and rebranded version of the initial vision of Facebook of a global digital currency. It will be native to its platform and would be tied to multiple fiat currencies.

Changes in the associations evolving project have been noted by some commentators in addition to shedding the name Libra. It is said to be the response to a striking pushback from global regulators.

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

Diem plays the waiting game

As of now, Diem continues in its wait for the regulatory approval and the grant of payment license from the Swiss Financial Market Supervisory Organization.

Chainalysis CEO Michael Gronager was optimistic about the matter when he spoke to CNBC and said “I think it (Diem) will get past the gates this year. It would be a missed opportunity if not.”

It’s no wonder, as the plan was supposed to materialize early this year, but have been pushed back again.

 

Image courtesy of Stock Rumors/YouTube

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