lswcap
On May 12, 2021, it was announced that Diem, a blockchain-based cryptocurrency developed by Facebook, aims to start the service by moving its main business from Switzerland to the United States. DM aims to issue cryptocurrencies collateralized in US dollars through an alliance with Silvergate Bank in the United States, which specializes in cryptocurrency-related businesses.
Facebook announced its own cryptocurrency, Libra, in 2019, aiming to provide financial services for people without bank accounts, which make up a third of the world’s population. The Libra Association, which was established to run Libra, has many global companies expressed their participation in partners.
Libra, who was in a difficult situation even before the service began, announced in December 2020 that it would change its name to DM and strengthen the operating system. The Swiss Financial Market Research Bureau has been reviewed and approved by FINMA and aims to launch formal service.
On May 12, 2021, DM announced that it would move its major business from Switzerland to the United States in partnership with Silvergate Bank of the United States, which specializes in cryptocurrency business. DM adopted stablecoin that stabilized its price using the legal currency issued by the government as collateral, and has a plan to issue Diem USD secured in US dollars in partnership with Silvergate Bank.
The new plan is that Silvergate Bank will become the exclusive issuer of DM USD and manage the dollar currency reserve. In addition, in April 2021, it is reported that DM will start trial operation of stablecoin in late 2021.
Diem CEO Stuart Libyh said he is committed to providing financial system benefits to more people around the world using blockchain technology, and is looking forward to working with Silvergate Bank to realize this vision. Alan Lane, CEO of Silvergate Bank, also said that he sympathized with DM’s technology and goals and looked forward to working with DM.
Silvergate Bank is an accredited bank in California and a member of the Federal Reserve System, the central banking system of the United States. Accordingly, DM will withdraw the payment system license applied to FINMA and register it as a financial service in the US Treasury Department’s Financial Crime Enforcement Network. DM said its plans do not require FINMA licenses to meet the scope of US regulations, but the project benefits greatly from FINMA’s intensive licensing process in Switzerland and the constructive opinions of more than 20 regulators around the world. Revealed. Related information can be found here.
Add comment