Facebook-initiated Diem Association announces a new model of its upcoming stablecoin that is set to be issued by California state-chartered bank Silvergate.
While there were many rumors circulating around Facebook’s quiet cryptocurrency project, details didn’t emerge until mid-June 2019 with the reveal of Libra — a cryptocurrency backed by reserve assets maintained in concert by a consortium of companies around the world with the goal of providing secure financial services to anyone anywhere.
The news triggered immediate pushback by the United States government for fear of Facebook’s track record with user data, influence on world affairs and the possible upending of the U.S. dollar’s status as a global reserve currency. Notably, both Facebook CEO Mark Zuckerberg and Libra head David Marcus testified before the House Financial Services Committee.
The Libra project has since pivoted to issuing fiat-backed stablecoins rather than attempting to issue a wholly new currency to be used by Facebook’s billion-plus user base.
The project quickly ignited a debate among world leaders around the future of digital assets in the global economy, with some countries actively researching and developing their own digital currency initiatives.
A close look at the policy issues relating to the potential impact of stablecoins on financial systems and economies around the world.19849
Kevin Weil has previously said that the launch of the Facebook-backed stablecoin would be "a journey of years and decades."8343
Fireblocks and First Digital Asset Group have developed a seamless connection to Diem, allowing financial institutions to access the emerging payment network. The platform is still awaiting regulatory approval before it can launch.14430
The Agricultural Bank of China has launched an ATM pilot program that enables citizens to convert cash and savings to and from the digital yuan.9163
Attorney General William Barr tendered his resignation to President Trump last night, opening up the conversation as to how a Biden-appointed successor will handle crypto.3126
A former PBoC official says that his country has taken a cautious approach with the digital yuan.3699
Regulators around the globe are increasingly turning hostile to the social media behemoth.4958
Executives from Facebook’s ‘Diem’ Association, Circle, Soramitsu, and Coinbase discussed how and when digital currencies will go mainstream, at the Singapore Fintech Festival.18776
The social media giant has rebranded in hopes of scoring regulatory approval.10913
Facebook’s plan to rebrand its stablecoin project from Libra to Diem has been met with legal threats from a small European startup of the same name.10533
German finance minister says “A wolf in sheep's clothing is still a wolf.”6564
Stablecoins are an integral part of the future of the financial system. And Facebook’s Diem, formerly Libra, is part of that future.31586
But the bill is unlikely to become law any time soon.13899
Tentative clampdowns coming from both the Treasury and the House in the United States lead this week's Law Decoded.6827