Diem Stablecoin Prepares for Liftoff With Fireblocks Custody Partnership

Crypto custodian Fireblocks and payments platform First Digital Assets Group are providing connectivity and support to Diem, the global stablecoin and payments system formerly known as Libra.

Fireblocks and First are providing the digital plumbing to allow financial service providers such as banks, exchanges, payment service providers (PSPs) and eWallets to plug into Diem on day one, the companies said.

Facebook launched Libra back in 2019 and almost immediately became embroiled in a whirlwind of regulatory blowback and governmental outrage. The project’s ambitious goal to create a private global stablecoin backed by a basket of currencies, threatened to unseat the high echelons of sovereign monetary policy. 

Now, the rebranded Diem plans to emerge around the end of this quarter, with a modest minimum viable project based around a U.S. dollar stablecoin.

It will be integrated, via Fireblocks and First, with Diem Association members like Spotify, Farfetch, Lyft, Uber, and Shopify. (It’s notable that former Libra Association members PayPal, Mastercard and Visa are busy pursuing their own plans with public cryptocurrencies.)

The streamlined project has bent to the will of regulators and operates on a strict permissioned basis with a specific onboarding process to become a Diem virtual asset service provider, or VASP.

“What Fireblocks and First have built allows merchants and payment service providers to use the Diem stablecoin as a payment method in a way that’s really integrated,” Michael Shaulov, CEO of Fireblocks, said in an interview. “It’s more or less seamless, like how they would accept Visa, Mastercard, or any other form of payment.”

The Diem payments system also allows things like refunds, and the stablecoin can be easily changed back into fiat to pay merchants or salaries and so on, Shaulov said. Looking further down the road, the network also includes a sophisticated smart contract language called Move, Shaulov added, which could be used in areas like permissioned decentralized finance (DeFi.) 

Shaulov believes Diem will still be one of the fundamental projects bringing crypto into the mainstream, despite taking a while to get off the ground and garnering criticism because of its narrowed-down launch product.

“Think about the impact PayPal is having on Bitcoin by bringing it to 350 million users,” Shaulov said. “Facebook has 2.5 billion users. And they know how to get user experience right. They know how to make things simple, how to engage users.”



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Facebook Digital Currency Libra Rebrands Name to Diem Ahead of Its Dollar-Backed Stablecoin Launch

Facebook-backed Libra Association has rebranded its name to the Diem Association ahead of the proposed launch of its dollar-backed stablecoin.

Per a report from Reuters, the name rebranding is a move to get a better chance of gaining regulatory approvals for its upcoming Diem stablecoin currency by stressing the project and the association’s independence.

Since unveiling the plans for Facebook’s very own digital currency Libra, regulators have combated all efforts for a stablecoin to be launched based on concerns that the project could distort financial stability, as well as have the potential to erode a central control over monetary policies.

The name change from Libra to Diem is set to establish a similar gameplan of launching a stablecoin that will help people around the world make safe and secure cash transactions in a compliant manner. The Diem Association’s CEO Stuart Levey said in a statement:

“The Diem project will provide a simple platform for fintech innovation to thrive and enable consumers and businesses to conduct instantaneous, low-cost, highly secure transactions.” 

He added that the ultimate goal was to provide financial inclusion. He said:

“We are committed to doing so in a way that promotes financial inclusion – expanding access to those who need it most, and simultaneously protecting the integrity of the financial system by deterring and detecting illicit conduct. We are excited to introduce Diem – a new name that signals the project’s growing maturity and independence.”

Stablecoins such as what the Diem token/cryptocurrency is set to model has received a wide embrace in 2020, with the Tether (USDT) ranking as one of the biggest stablecoins in the crypto space up to date. With the upcoming Diem currency, Tether’s position may potentially be toppled as the Diem project has strong backing from Facebook. With the social media network, billions of users may naturally be tapped in to embrace the stablecoin.

The underlying goal for the Diem Association is to gain crypto approval from legal authorities and the plans to debut the coin in a limited format coupled with the name change may help reduce the regulatory hurdles the project has been facing.

Image source: Shutterstock


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Facebook to Reportedly Roll Out Libra Dollar-Backed Stablecoin in January 2021

Mark Zuckerberg on a Coin

Mark Zuckerberg on a CoinFacebook’s long-awaited Libra might just see the light of day following reports that the first dollar-backed stablecoin could launch in January 2021. However, the launch date would be determined by an approval from the Swiss financial regulator.  A Downgraded Libra Stablecoin to Launch in Early Q1 2021 According to the Financial Times on November 27,

Read MoreRead More. The post by Anthonia Isichei appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News


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