Project abandons Swiss license application after shrinking global ambitions
Illustration. FT montage Facebook-led digital currency project Diem (originally called Libra) is moving operations to the US and will partner with a local bank to issue US dollar-backed stablecoins. The project, which is supported by 26 businesses and non-profit organizations, has also dropped its application with the Swiss Financial Market Supervisory Authority to operate as a payment service, and will instead post registered as a money services business with the U.S. Department of the Treasury. The initiative was formerly known as Libra but was renamed late last year due to pressure from global regulators, who were concerned that it could threaten monetary stability and become a moot point. hot for money laundering. Some of its founding members — including PayPal, Mastercard, Vodafone and eBay — have dropped out because of similar reputational fears and concerns. Initially, Diem sought to create a synthetic coin backed by a basket of currencies, before narrowing his vision to focusing on launching a single coin backed by a single coin. USD. On Wednesday, May 12, Diem said it planned to run a “blockchain-based payment system that facilitates the real-time transfer of Diem stablecoins between approved network participants browsing”, called the Diem Payments Network. It said it was moving its headquarters from Switzerland to the US. Silvergate, a San Francisco-based bank, will become the exclusive issuer of Diem’s stablecoin token and will manage the reserve, it said. “Our plans bring the project fully into the scope of US regulation and no longer require a license from Finma,” said Stuart Levey, chief executive officer of Diem and former chief legal officer of HSBC. “. “We are committed to creating a secure payment system for consumers and businesses, paying faster and cheaper, and taking advantage of blockchain technology to the benefit of the financial system. to more people around the world,” he added.
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