The Facebook-backed Diem project (formerly Libra) could launch a digital currency stablecoin pilot in 2021, according to reports.
- The pilot will be launched with a single stablecoin pegged to the U.S dollar, CNBC reported Tuesday, citing a person familiar with the matter.
- It will be based largely on payments between individual consumers, potentially with the option for users to buy goods and services.
- The Diem project is currently in talks with Swiss regulators to secure a payment license.
- Originally named Libra when announced by Facebook in 2019, the project has experienced intense scrutiny from lawmakers and regulators and witnessed the departure of a string of partners.
- This culminated in the Libra Association scaling back its ambitions in April 2020, pivoting to the development of a number of stablecoins pegged to different currencies, as opposed to the original plan of a global digital currency backed by a basket of national currencies.