Its co-founder explained that the cryptocurrency proposed by social media giant Facebook is preparing to start using a “phased approach.” The Diem Association, which oversees the development of cryptocurrencies, has negotiated with regulators to obtain a license.

Diem update release plan

Christian Catalini, Diem’s co-founder and chief economist, said in an interview with CNBC on Tuesday that Facebook-backed cryptocurrency “positions” (previously known as Libra) are taking a “phased approach”. Method” launched.

According to the news media quoted a person familiar with the matter, the Swiss-based non-profit organization Diem Association is responsible for overseeing the development of diem, and its goal is to launch a trial of a single stable currency pegged to the US dollar this year.

The person familiar with the matter explained that the pilot project is small in scale and will mainly focus on transactions between individual consumers, adding that users can also choose to buy goods and pay.

Since its first announcement by the social media giant in June 2019, the cryptocurrency project proposed by Facebook has been strongly opposed by regulators around the world.

Initially, the cryptocurrency was designed to become a universal currency tied to a basket of sovereign currencies such as the U.S. dollar and the euro. However, after being scrutinized by regulatory agencies, the team revised its plan. Now, its goal is to launch a variety of stablecoins backed by currencies supported by different governments, as well as a multi-currency token.

Diem is now negotiating with the Swiss financial regulator to obtain a payment license. Catalini told the news media:

An important step in our dialogue with regulators is the phased launch. We will gradually adopt different functions and use cases, as well as applications in different fields.

He further described that all members must undergo extensive Know Your Customer (KYC) inspections. “Once we get the green light [from the regulators], We will start experimenting with a small number of users and a small number of players. “He clarified.

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What do you think of Diem’s ​​launch plan? Let us know in the comments section below.

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