The digital financial group Diem Association, formerly known as Facebook Inc (FB.O) 's Libra project, plans to launch a US dollar stall as it reduces its global ambitions to focus on the United States, the group said on Wednesday.
The organization, which consists of 26 non-profit financial firms, said it was moving its major operations from Switzerland to the United States and withdrew its application for a payment system license with the Swiss financial regulator.
Diem Networks US, a unit of the Deim Association, will operate a blockchain-based payment system that allows real-time transfer of Diem solidcoins and will register as a financial services business with the U.S. Treasury Department, the group said.
Stablecoins are digital currencies linked to fiat currencies. Silvergate Bank in California will issue Diem USD solidcoin and manage Diem USD deposits. Diem said he would introduce a solidcoin driver, but did not say when.
"We are committed to a secure payment system for consumers and businesses, which pays faster and cheaper," said the association.
In a statement, the Swiss Financial Market Supervisory Authority confirmed Diem's decision to withdraw its application for a payment license.
"Diem plans to introduce a payment system from the USA in the first phase because initially the program will focus more on the USA," the organization said.
Facebook began launching Libra programs in June 2019, as part of an effort to expand non-social media into e-commerce and global payments. It says Libra, along with partners such as payment companies and credit card companies, will create a digital token backed by a broader combination of short-term government financing and debt.
The media giant said it hoped Libra would boost trade between consumers and businesses around the world, and give more people access to financial services.
But the project soon met with strong opposition from policymakers around the world, who were concerned that it could undermine their financial management, allow crime, and undermine user privacy.
In April 2020, Libra and its allies abandoned plans to hold a basket of financial and debt debt due to stable financially backed funds and sought the approval of the Swiss regulator.
In December, Libra was renamed Diem in a renewed effort to obtain regulatory approval, the size of which returned to the dollar-backed coin.
Currently, Facebook wallet Novi is one of 26 Diem members and a small investor.
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