[Digital Today Reporter Choo Hyun-woo] Economic media CNBC reported on the 20th (local time) that the stablecoin project’Diem’, which Facebook is leading the development of, will conduct a pilot distribution within this year.
The DM trial distribution is expected to be implemented on a small scale in the second half of the year. It is highly likely to be in the form of product purchase and service usage fee payments that are specialized for remittance between individuals. However, the specific scope and schedule of pilot distribution were not confirmed.
Unlike Libra, which used to be a currency basket model based on multinational legal currencies such as dollar and yen, DM is a stablecoin that follows the US dollar.
Since the establishment of the Libra Association in 2019, it started as an ambitious global stablecoin project, but due to regulations by governments and financial authorities in each country, the name was changed to DM in 2020 and the direction of the project was also changed.
DM is a Facebook-centered stablecoin project for retail transactions that has been reduced in size and target. It is currently in discussions with Swiss regulators to obtain a payment business license. Big financial service companies such as PayPal, Visa, and Mastercard have also put the DM project on hold.
Facebook has yet to present a clear vision for DM’s project.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.