Facebook and its digital currency partners are expected to launch Diem, formerly known as Libra, for a small pilot later this year CNBC Report on Tuesday.
The media house’s anonymous source stated that the stablecoin will be launched in limited form and only pegged to the US dollar. While the Diem Association is not yet to make a formal announcement, the pilot is expected to be small and the consortium will mainly focus on inter-customer transactions.
This isn’t the first insider speculation about Diem’s launch, as an earlier report called for its January 2021 launch.
A repackaged digital currency
Facebook first presented its project for digital currencies in mid-2019 and formed a non-profit consortium with many well-known names in the fields of technology and payments. Facebook has an existing user base of more than 2.8 billion worldwide and owns three top social media platforms: Facebook, Messenger and Instagram.
The move quickly alerted global regulators to the threats a private gambler posed to the existing monetary system. Many partners, including Visa, Mastercard, Paypal, Stripe, and a few others, left the consortium to avoid negative relationships with guard dogs.
The regulatory backlash on Diem even forced the consortium to make changes to the originally proposed digital currency and renamed the project as well. In addition, a number of key employees have been hired to lead the ambitious project.
Earlier, Diem officials had indicated that the project was progressing rapidly despite the legal complications. “A big step in our dialogue with regulators has been a step-by-step approach,” said Christian Catalini, Diem’s chief economist CNBC earlier. “We will gradually introduce different functions and use cases, applications in different areas.”
“Once we get the green light, we’ll experiment with a small number of users and a small number of players.”