The social media giant is set to launch using the cryptocurrency “phased approach” proposed by Facebook, its co-creators point out. The Diem Association, which oversees the development of crypto, is negotiating with regulators to obtain licenses.
Diem update launch plan
A “phased approach” is being taken to launch the Facebook-backed cryptocurrency “Diem”, formerly called Labra, Diem, Christian Catalini’s co-creator and chief economist, told CNBC in an interview published on Tuesday .
The news outlet cited the person familiar with the matter as Switzerland’s nonprofit Diem Association, which oversees the development of Diem, aims to launch a pilot with a single stable dollar for US dollars this year.
The pilot will be small-scale and largely focused on transactions between individual consumers, the person explained, adding that users may also have the option to purchase goods and pay for purchases.
The Facebook-proposed cryptocurrency project has faced stiff opposition from various regulators around the world since it was first announced by the social media giant in June 2019.
Cryptocurrency was initially a universal currency, tied to a basket of sovereign currencies such as the US Dollar and Euro. However, after much scrutiny from the regulators, the group revised its plan. It now aims to launch several stable stocks backed by various government-backed currencies, as well as a multi-currency coin.
Diem is now negotiating with Swiss financial regulators to obtain a payment license. Catalini told the news outlet:
A major step of our interaction with regulators has been the phased approach to the launch. We are using in various activities and use cases, applications in different fields.
He further explained that all the members would have to go through your customer (KYC) check comprehensively. “Once we got the green light [from the regulators]”We will start experimenting with a small number of users and a small number of players,” he explained.
What do you think about Diem’s launch plan? Let us know in the comments section below.
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