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Diem Association Announce Plans for Stablecoin, Shifts to U.S.


cryptoknowmics.com 13 May 2021 05:30, UTC
Reading time: ~2 m

Facebook’s long-delayed cryptocurrency plans pick a flight as the announcement associated with the launch of U.S. stablecoin was made by Diem Association. According to the Facebook-backed Diem Association, the pilot version of stablecoin will come soon as it shifts its base of operations from Switzerland to the U.S. However, the exact dates were not announced yet. 

Facebook Backed Diem Association Launch Pilot Version of Stablecoin

As per the details of the launch, the consumers will be facilitated to use digital tokens pegged with the price of dollars within a select network of companies. It was 2019 when the company announced its launch of global cryptocurrency in partnership with financial heavyweights like Visa and PayPal. 

While announcing the stablecoin, the Diem Association declared:

“It was shifting its base of operations from Switzerland to the U.S., a move that would simplify plans for the digital currency it now calls US Diem.” 

“The Silvergate Bank, a California bank that serves a number of crypto companies, would be the exclusive issuer of the stablecoins,” added the association. 

“The formation of this partnership is an important step in preparation for a Diem USD pilot,” the Diem Association further added. 

Stablecoin Plans Are a Significant Step Back 

The Diem Association, once known as Libra, rebranded itself in December last year. The move of relabeling itself aims to distance itself from the project’s original global ambitions.

The plan is dramatically a scaled-back version of Facebook’s first attempt to sell in the summer of 2019. It is seen that the Association is no longer listing its partners on its home page. However, the departure of Uber, Shopify, Spotify, and Coinbase was announced in the news section.

As the Diem USD launch, those firms surely form the nucleus of a network supported by Facebook. This allows consumers to pay merchants and vice-versa through platforms like WhatsApp and Facebook Messenger.

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