Facebook-backed crypto project Diem to launch US stablecoin in major shift

Representations of virtual currency are displayed in front of the Libra logo in this illustration picture, June 21, 2019. REUTERS/Dado Ruvic/Illustration//File PhotoDigital currency group Diem Association, formerly known as Facebook Inc (FB.O)’s Libra project, plans to launch a U.S. dollar stablecoin as it scales back its global ambitions to focus on the United States, the group said on Wednesday.The association, which comprises 26 financial firms and non-profits, said it was relocating its main operations from Switzerland to the United States and withdrawing its payment system license application with the Swiss financial regulator.Diem Networks U.S., a unit of the Deim Association, will run a blockchain-based payment system that allows real-time transfer of Diem stablecoins and will register as a money services business with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network, the group said.Stablecoins are digital currencies pegged to a fiat currency. California-based Silvergate Bank will issue the Diem USD stablecoin and manage the Diem USD reserve. Diem said it would launch a pilot of the stablecoin, but it did not say when.”We are committed to a payment system that is safe for consumers and businesses, makes payments faster and cheaper,” the association said.In a statement, the Swiss Financial…
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