Facebook-backed crypto project Diem moves to US, abandoning Swiss licence plans

Thursday 13 May 2021 08:29 CET | News

Digital currency group Diem Association, formally known as Facebook’s Libra project, has announced plans to launch a US dollar stablecoin.

The association, which comprises 26 financial firms and non-profits, announced it was relocating its main operations from Switzerland to the US and withdrawing its payment system license application with the Swiss financial regulator.

The group announced that Diem Networks US, a unit of the Diem Association, will run a blockchain-based payment system that allows real-time transfer of Diem stablecoins and will register as a money services business with the US Department of the Treasury’s Financial Crimes Enforcement Network.

Stablecoins are digital currencies pegged to a fiat currency. US-based Silvergate Bank will issue the Diem USD stablecoin and manage the Diem USD reserve. Diem said it would launch a pilot of the stablecoin, but it did not say when.

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Keywords: Diem Association, stablecoin, payment processing, blockchain, cross-border payments
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: United States
This article is part of category

Blockchain & Cryptocurrencies