The Facebook cryptocurrency project
During this time, Facebook has significantly lowered its leadership in the project, since the social network has gone from being the most visible face of the proposal in June 2019 to becoming only one of the 26 member companies through its financial subsidiary Novi. In a statement published on Wednesday, the Diem association revealed a “strategic change” to focus on the US market, which implies abandoning the procedures in which it was involved to obtain a payment system license from the Swiss regulatory body.
In the US, Diem will locate its new operations center in Washington, the capital, and will partner with the Californian bank Silvergate to issue in the future a cryptocurrency linked to the value of the dollar, known as “stablecoins”. This is also a significant departure from the original Libra project, which due to its global ambition was not going to be tied to a single currency, but was to be backed by a basket made up of bank deposits and sovereign debt from various countries.
As indicated by the association, the new plans include registering Diem as a money services business on the list of the United States Government and allow immediate transfers between individuals through a system based on “blockchain” technology, with which the vast majority of digital currencies operate.
The Silvergate bank will be the exclusive issuer of Diem and will manage the reserves of the digital currency. After the departure of such relevant companies as Vodafone, PayPal, eBay, Stripe, Visa, MasterCard and Booking Holdings, the most prominent members of the Diem association today are, in addition to Facebook, Uber, Lyft and Spotify. EFE News
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