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Diem, a digital currency project led by Facebook, is moving its business to the United States and will cooperate with a domestic bank to issue a stable currency backed by US dollars, which is greatly downgraded from the initial rating. global vision.
The project, supported by 26 companies and non-profit organizations, has also transferred its applications to the Swiss Financial Market Supervisory Authority to operate as a payment service, and will apply to the US Department of the Treasury for registration as a money service company.
The plan was previously called Libra, but due to pressure from India, it was renamed at the end of last year. Global regulatory agency Worried that it may threaten currency stability and become a hotbed of money laundering.
Many of its founding members (including PayPal, Mastercard, Vodafone and eBay) have resigned due to similar concerns and reputation concerns.
Initially, Diem tried to create a synthetic coin backed by a basket of currencies, and then gradually scaled back its vision to focus on launching a single coin backed one-to-one by the U.S. dollar.
Diem said on Wednesday that it plans to run a “blockchain-based payment system called the “Diem Payment Network” to facilitate the real-time transfer of Diem stablecoins between approved network participants.” It said it moved its headquarters from Switzerland to the United States.
It said that Silver Gate Bank in San Francisco will become the sole issuer of its stablecoin tokens and will manage the reserves.
Stuart Levey, Diem’s chief executive and former head of legal affairs at HSBC, said: “Our plan makes the project completely within the scope of U.S. supervision and no longer requires Finma’s license.”
He added: “We are committed to providing consumers and businesses with a secure payment system, making payments faster and cheaper, and using blockchain technology to bring the benefits of the financial system to more people around the world.”
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