Facebook-backed Diem Association reportedly to launch stablecoin pilot in 2021

By Warren Hayes | May 2, 2021

Facebook-supported virtual currency initiative Diem could reportedly roll out its first stablecoin in 2021 as a small-scale trial phase. 

Specifically, an unspecified source reportedly claimed that the nonprofit Diem Association from Switzerland is still having plans down its pipeline to release a trial phase for a US-based, dollar-backed stablecoin in the latter half of 2021. 

In November last year, the association had already disclosed details of its plans for a limited release of a U.S.-dollar stablecoin in January. However, it has been a long time since then without any major development to the project. 

Diem’s stablecoin reportedly functions as a majorly scaled-back and rebranded version of Facebook’s initial aim for an international currency, native to its platform and has ties to numerous fiat currencies.

Apart from abandoning the Libra name, commentators further noticed the significant adjustments to Diem’s evolving project, corresponding to an intense scrutiny from international regulators and nation-states. 

Ran Goldi, Head of First Digital Assets Group, reportedly remarked that Diem’s underlying tech has witnessed a dramatic change throughout 2020, and fifty percent “from a naive blockchain to a very sophisticated blockchain that you can see is trying to answer some of the questions that regulators had.” 

First Digital Assets Group is reportedly designing infrastructure dedicated to merchants at the moment, in an attempt to support Diem’s use as a payment measure. 

Diem, meanwhile, will reportedly keep on expecting regulatory green light and the go-ahead of a payments license from the Swiss Financial Market Supervisory Organization.

“I think it [Diem] will get past the gates this year. It would be a missed opportunity if not.” Chainalysis CEO Michael Gronager reportedly remarked.

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