Today Facebook’s Novi announced a ‘small’ pilot of its digital currency wallet in Guatemala and most of the United States. The initial phase will use the Paxos stablecoin rather than Diem, which Facebook founded in 2019 but has not yet received regulatory approval. Coinbase is providing custody.
“We intend to migrate to Diem once it receives regulatory approval,” said Novi’s leader David Marcus.
Standing back, Diem has faced one regulatory hurdle after another. And central banks are still very uncomfortable about its potential to become systemic. Apart from the financial stability risks, that also could give it the power to challenge sovereign money.
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