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Facebook’s cryptocurrency dreams are not dead; Diem is expected to launch this year

By on May 21, 2021 0

Remember when Facebook started talking about launching their own crypto coin two years ago called Libra and everyone hesitated and then they kind of walked away? Well, that hasn’t totally gone away, he’s now called Diem, and the project is still moving towards a launch.

Libra started out as a very ambitious project, with alleged backers that included Visa, Mastercard, Paypal, Uber, eBay, and Coinbase. The idea was to create a so-called “stablecoin” linked to the US dollar that would be funded by a consortium called the Libra Association based in Geneva, Switzerland. This is how it was all announced in June 2019, but by the fall of that year, Visa, eBay, Mastercard and other major backers were all announcing their releases of the Libra Association.

From a political or PR standpoint, it hasn’t been easy for Facebook to kick-start a lot over the past few years, and the world is rightly skeptical of just about everything the company does. plot. But now that cryptocurrencies are all the rage again, the Associated Press Reports that Facebook’s Coin, and the renowned association Diem, are still aiming to launch the coin this year, and they have moved the Association’s base of operations out of Switzerland to the United States.

The name change apparently happened quietly in December, and the project was downsized considerably. Still, the Diem Association has 25 companies associated with it, including Uber, Lyft, and Shopify, and blockchain company Coinbase remains on board. Venture capital firms Andreessen Horowitz, Breakthrough Initiatives and Thrive Capital are also part of the consortium.

As the AP notes, Libra’s original goal was to become a global currency to help the unbanked in developing countries around the world, making it easier to exchange money on platforms like WhatsApp. . But the move to the United States, following the retreat of regulators in the EU, marks a further reduction of the Diem project.

Still, it’s unclear what Facebook will do with Diem if and when this becomes one thing, or if it could become another reason for Congress to take a wary eye on the company’s business ventures.

“An important step in our dialogue with regulators has been a phased approach to the launch,” says Christian Catalini, Chief Economist at Diem, talk to CNBC. “We will gradually introduce different features and use cases, applications in different areas.”

Previously: Facebook Unveils Details About Its Cryptocurrency, Libra, And Plan To Track Every Dollar We Spend