Facebook-Backed Diem Expected to Launch Stablecoin Pilot in 2021

Facebook-backed Diem Association has announced plans to launch a single stablecoin pegged to the United States dollar sometime later in 2021.

April 20, 2021 | AtoZ Markets – Facebook-backed digital currency project Diem could launch its first stablecoin in 2021 as a small-scale pilot, according to an anonymous source.

Cited in a CNBC report published on Tuesday, the source said the Swiss-based non-profit organization The Diem Association still plans to launch its pilot for a US dollar-backed stablecoin later this year.

In November 2020, the association had already announced its plans for a limited launch of a US dollar stablecoin in January, but as the months pass, the currency has yet to see the light of day.

Diem's ​​stablecoin is a significantly shortened and renamed version of Facebook's initial vision for a global digital currency, native to its platform, which would be linked to a basket of various fiat currencies. In addition to abandoning the name Libra, commentators pointed to profound changes in Diem's evolving project in response to an impressive setback by global regulators and nation-states.

Ran Goldi, CEO of First Digital Assets Group, told CNBC that Diem's ​​underlying technology "has changed dramatically in the past year and a half from a naive blockchain to a very sophisticated blockchain that you can witness by trying to answer some of the questions that regulators have had ". The  First Digital Assets Group is currently building the infrastructure for traders to facilitate the use of Diem as a means of payment.

Diem, however, continues to await regulatory approval and the granting of a payment license from the Swiss Financial Market Supervision Organization. Commentators who spoke to CNBC were optimistic, with Chainalysis CEO Michael Gronager saying:

I think [Diem] is going to go through the gates this year. Otherwise, it would be a missed opportunity

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