Facebook-led and announced in 2019, the digital currency concept “Libra” has undergone a major change in its original currency design, and its name has changed to “Diem.” Christian Catalini, Chief Economist at Diem, said yesterday that Libra’s vision was “sweet.”
Catalini, who took the stage at the Consensus 2021 conference hosted by CoinDesk, said Diem would learn lessons from the past and be successful in the long run.
Diem (formerly Libra) released a white paper in June 2019 that seemed ambitious. Since then, I have changed my plan several times. The project has been criticized by regulators around the world, and several companies affiliated with the Libra Association have left.
Once based in Switzerland, it moved to the United States in May this year and partnered with Silvergate Bank, which is actively working on crypto assets, to issue stable coins linked to the US dollar.
“We have widespread connections with regulators around the world and are evolving in many ways. We are strengthening our controls to protect consumers and combat financial crimes on our networks.”
Federal Reserve Board of Governors (FRB) director Lael Brainard will be on stage at the conference’s keynote on Wednesday, and Central Bank Digital Currency (CBDC) said, “It could put consumers and businesses at risk. “.
Catalini said he fully agreed with Brainard’s stance, saying, “Looking at the current situation of stable coins, many are called stable coins,” said the stability of existing players. He questioned the economic structure.
Diem will be completely different, he said. Diem wants to replace the American CBDC “digital dollar.”
“We are proposing a public-private partnership. Issuers like the Silvergate Bank will work with us to issue the” Diemdoll “, but only until the CBDC comes out … As far as I know, we are the only stable coin issuer who has publicly promised to phase out tokens and replace them with the CBDC. “
Catalini envisions an evolution of the American financial system that leverages technology. There, CBDC will be the foundation, and Diem will function as a “payment network that realizes new use cases and usage examples on its public system.”
Based in the United States again
Catalini cites the evolution of the US regulatory environment as to why he moved from Switzerland to the United States. He added that the project has moved from a basket of multiple currencies to a digital currency backed by a single currency. Therefore, the license application will be withdrawn. “
Diem is cautious about financial regulators around the world.
“We are working with central banks to make it clear that we will find solutions that do not conflict with national rules and regulations.”
Despite shrinking from its original grand plan, Diem aims to serve people who do not have a bank account, the so-called financial inclusion. However, it takes time to realize it.
“We have to take the time to develop good identity standards. It’s very difficult to distinguish between good and bad users. It will probably take years,” Catalini said.
Original Source : ourbitcoinnews.com
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