Facebook plans to run digital currency in Switzerland
Facebook’s Diem digital currency project is taking its operations to the U.S. and is partnering with a home bank to issue a stablecoin backed by the U.S. dollar, a major initial decline global perspective.
The project, which is supported by 26 companies and non-profit organizations, has left the application to the Swiss Financial Markets Supervisory Authority to act as a payment service and will instead apply for registration in the US Treasury as a service business.
The initiative was known as Libra, but was changed at the end of last year due to pressure global regulators concerned, in addition to threatening the stability of money and turning it into a money laundering site.
Silvergate Capital Corporation to Issue Diem Stablecoin in the US
Diem, formerly Libra, to issue a US dollar stablecoin in the US.
Silvergate is a Federal Reserve member bank and a provider of financial infrastructure solutions and services for the growing digital currency industry. Shares in Silvergate rocketed higher by over 17% in after-hours trading following the news.
As was previously reported, Diem, a Switzerland-based entity, has decided to pull its application with Swiss regulatory authorities to become a money payments operator.
Under the partnership, Silvergate Bank will become the exclusive issuer of the Diem USD stablecoin.
The Diam Association has also decided to move its primary operations from Switzerland to the United States.
China’s much-hyped digital yuan leaves early users underwhelmed Sorry, but your browser needs Javascript to use this site. If you re not sure how to activate it, please refer to this site: https://www.enable-javascript.com/
A sign for the digital yuan, also referred to as e-CNY, at a shopping mall in Shanghai | REUTERS
Bloomberg May 10, 2021
As China moves closer to rolling out the world’s first major sovereign digital currency, speculation over the global implications has reached a fever pitch.
Historian Niall Ferguson is calling the digital yuan a potentially fatal challenge” to decades of American financial hegemony. Franklin Templeton’s Michael Hasenstab says it could undermine the dollar’s role as the world’s reserve currency. Joe Biden’s White House is studying the potential threat to U.S. interests.