Diem, formerly known as Libra, is shifting its headquarters from Switzerland to the United States and withdrawing its Swiss FINMA payments license application. U.S. bank Silvergate will become the exclusive issuer of the Diem USD stablecoin and manage the Diem USD stablecoin reserve.
The Diem Association was initiated by Facebook as a stablecoin issuer and payments network and currently boasts 26 members, including Facebook wallet app Nov, Coinbase, Lyft and Uber.
It’s worth noting that this could be another trigger that accelerates central bank digital currency (CBDC) issuance. Several countries have stated that there’s no urgency for a CBDC but have specified a threat to monetary sovereignty as a potential trigger. For example, Canada has stated that a widely adopted U.S. dollar stablecoin might present a threat.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
