Media: Diem will launch pilot stablecoin by the end of the year

Facebook-backed project Diem (formerly Libra) intends to launch a pilot project with a digital currency pegged to the US dollar in 2021. It is reported by CNBC with reference to its own source.

According to the TV channel, testing will be small in scale, focusing mainly on transactions between individual consumers. Users can get the option to pay with stablecoin for purchases.

There is no approved launch date for the pilot, so the timing may change, the source said. 

The Diem Association, a non-profit organization behind the project, is currently in talks with the Swiss financial regulator to obtain a payment license to move forward with the digital currency.

“A big step in our dialogue with regulators was the phased approach to launch. We are going to gradually implement different functions and applications in different areas, ”said Christian Catalini, chief economist at Diem Association.

First unveiled by Facebook in 2019, the Libra digital currency project has raised concerns from regulators around the world. The authorities of Germany and France directly stated that they would block the development of Libra in the European Union.

In April 2020 Libra Association presented an updated white paper, which declined from the initial idea to launch a secured steyblkoina basket of currencies. The organization has unveiled a plan to issue several “stablecoins” pegged to various fiat currencies.

However, the project team later denied the rejection of the multicurrency stablecoin.

In December, the project underwent a rebranding , changing the name of the Libra Association to Diem Association.

We will remind, the Minister of Finance of Germany Olaf Scholz said that the renaming of digital currency from Facebook is not enough to remove the fear of regulators.

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