Facebook’s Dollar-Backed Stablecoin Diem Could Launch in January 2021

December 10, 2020, by Cris
Facebook’s upcoming cryptocurrency Libra (now called “Diem”) could go live in January 2021.
Facebook cryptocurrency

According to inside sources from the Financial Times, Facebook’s cryptocurrency will be operated as a dollar-backed stablecoin. This means that the value of the coin will always be equivalent to $1.00.

Other fiat currencies will likely be added as backing or collateral in the future. Previous reports suggest the Euro, the Japanese Yen, the British Pound, and the Singapore Dollar could be used as backing.

Though most news sources report that the project will launch in January, no launch specific date has been officially confirmed by the project.

Right now, the project is waiting to receive regulatory approval from the Swiss Financial Market Supervisory Authority (FINMA). That regulator will grant it the right to operate a payments service in its jurisdiction.

Of course, delays in that area could postpone the launch further.

Libra Rebrands as Diem

This week, Facebook’s crypto project also announced changes to its brand.

Until now, the cryptocurrency was known as Libra, but going forward, it will be known as Diem. The same is true of the organization behind the coin: The Libra Association is now known as the Diem Association.

The rebranding represents the project’s efforts to distance itself from Facebook’s recent controversies and past regulatory troubles. Diem is also appointing new team members to help shape its new identity.

However, the central controversy behind the coin is still in play. Unlike Bitcoin and many other cryptocurrencies, Facebook’s cryptocurrency will be centrally controlled by a coalition at almost every point.

As such, it remains to be seen whether the cryptocurrency community will embrace Facebook’s new cryptocurrency—or whether it will reject it.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.