Facebook backed Diem has new launch plans

Facebook Libra

Time for a little switcheroo! The social network has already done it before, changing the branding of its cryptocurrency from Libra to Diem. And now Facebook is switching things again.

For the sake of optimization.

The social giant wants to launch this digital coin using what it calls a phased approach, with a small-scale pilot that will largely focus on transactions between individual customers. There may also be an option for users to buy goods and pay for purchase during this phase.

So, no flashy debut as earlier planned.

The Diem Association, which oversees the development of this crypto, has been in talks with regulators to obtain a license. And the Switzerland based nonprofit plans to move ahead with this pilot with a single stablecoin pegged to the US dollar this year.

All these details have been revealed by the chief economist of Diem, Christian Catalini, who detailed this in an interview with CNBC published on Tuesday.

The Facebook proposed cryptocurrency project has faced strong opposition from various regulators worldwide since the social media giant announced it in June 2019.

Initially intended as a universal currency tied to a basket of sovereign currencies such as the US dollar and the euro, the group revised its plan for the cryptocurrency. It now aims to launch multiple stablecoins backed by different government backed currencies, as well as one multicurrency coin.

Diem is now in talks with Swiss financial regulators to obtain a payment license. Once it gets the greenlight from regulators, the organization will start experimenting with a small number of users and a small number of players.

Makes sense in the long run, this.

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