Diem, a Facebook-backed digital currency, could launch its small-scale project in the coming months, CNBC reports. The report by the American publication further claimed that the non-profit organization based in Switzerland still plans to launch their coin backed by the US dollar in 2021.
Even though the Diem Association earlier revealed its aim to launch the first stablecoin in January this year, it is yet to launch three months down the lane. Diem, which is more like a scaled-back version of Facebook’s initial coin, is likely to be tied to a couple of fiat currencies.
Apart from its rebranding to Libra, experts also point out the significant changes made in response to the global push by the government regulators. According to a top official of the First Digital Assets Group, Ran Goldi, the Diem coin has “changed dramatically over the past year and a half from a naive blockchain to a very sophisticated blockchain that you can see is trying to answer some of the questions that regulators had.”
Currently, Goldi’s company is busy building the infrastructure that would ultimately pave the way for the coin’s use as a currency. On the other hand, the Facebook-backed currency awaits a go-ahead from the Swiss regulators, with experts like Michael Gronager from Chainanalysis suggesting that it will pass this year.