Facebook is getting into the crypto game again. However, this time, it is without the bravado that followed the launch of Libra in 2019. Then, the social media giant got into a partnership with Paypal and Visa, in a move that was hailed as a step towards mainstream crypto adoption. But the move was scuttled by regulatory complexities.
This time around, Facebook is taking a more tempered approach to the market. The company has announced that it was backing the Diem Association for the launch of a stable coin. According to the Diem association, its subsidiary, Diem Networks U.S, was in the process of a partnership with Silvergate Capital for the issuance of the Diem stablecoin that will be backed by the US Dollar.
Diem Networks U.S would run this payment network. It also added that the network would run on a permissioned blockchain. The launch of this stablecoin would also see the firm shift its operations from Switzerland to United States.
The move would also give the crypto-related firm more leeway to navigate the industry away from the more restrictive Swiss financial market. Experts have opined that this could be an indicator of Facebook’s growing ambitions in the crypto space.