Diem, which Facebook funds, has announced that they will relocate their operations from Switzerland to the United States and test their stablecoin.
Facebook’s attempts to launch its token proved to be so long-lasting that they are still in effect. Following all of the difficulties and qualifications within the team, the Diem Association eventually informed us of the upcoming launch of a stablecoin in the United States. The only issue is that the most recent information about the ex-Libra was Diem’s desire to receive a license from the Swiss regulator.
Diem has now announced that it has withdrawn its license request and plans to “move” its headquarters from Switzerland to the United States. As part of this program, the team started working with Silvergate Bank in California. It now represents several crypto companies simultaneously, having been integrated with Circle USDC and Coinbase since 2018. The SEN has already handled over $166 billion in transactions in Q1 2021, up from $17.4 billion in Q1 2020. The collaboration also means that the bank will be granted issuer rights to future Diem USD stablecoins.
Diem’s new strategy is similar to the most streamlined iteration of what Facebook discussed in the summer of 2019. Remember how it announced the upcoming launch of its Libra digital currency in partnership with such behemoths as Visa and PayPal? However, due to local regulators’ efforts, the plans were destroyed, and main partners abandoned the largest social network.
The official Diem resource no longer provides comprehensive details about the project’s existing partners. On the other hand, Uber, Spotify, Lyft, Coinbase, and Shopify have not yet officially announced their exit. These companies are likely to be able to shape the project’s skeleton. With Facebook’s help, Diem would provide a simple payment method for platforms such as WhatsApp and Facebook Messenger.
The only odd thing is that, although Diem revealed plans to adopt stablecoin, their Facebook supporter has remained quiet. Is this to say that the parent company has already lost faith in the project and lets Libra’s future run its course?