Facebook Crypto Diem Launch Plan

The Facebook Crypto Diem Launch Plan Has Been Established

A Facebook Crypto project to launch a new stablecoin, called Diem, has now unveiled its launch plan. 

It was announced earlier this week by The Diem Association that Diem Networks U.S. would partner with Silvergate Capital Corporation. Silvergate is a California state-chartered bank and also a member of the Federal Reserve. There is also a plan to register as a money services business with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

Under this partnership, Silvergate will become the exclusive issuer of the Diem stablecoin for USD, in addition to managing the Diem reserve. The other important aspect is:

“The Association is also announcing a strategic shift to the United States, resulting in a move of Diem’s primary operations from Switzerland to the United States. “

Diem Networks U.S. will run the Diem Payment Network (DPN), a Blockchain-based payment system that enables the real-time transfer of Diem stablecoins among approved network participants. The project has the backing of Facebook, and it is therefore often named the “Facebook Crypto.”

The DPN “will be accessible to anyone with an entry-level smartphone and data connectivity,” the association’s website details, adding that “Diem Coins are backed by a reserve of assets made up of cash or cash equivalents and very short-term government securities.”

The Diem project will operate fully within the U.S. regulatory perimeter so it no longer requires a license from the Swiss Financial Markets Authority (FINMA).

What do you think about the Facebook Crypto Diem launch plan? Do you see a Facebook-backed stablecoin becoming widely adopted? Let us know your thoughts in the comments below

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