David Marcus, head of Facebook Financials, hopes both the cryptocurrency Diem and the social networking firm’s wallet Novi will get regulatory approval to launch next year, reports CNBC. Facebook’s cryptocurrency has faced regulatory stalemates since it was announced last year, which scaled-down ambitions and a rebrand.
- Diem, initially called Libra, was designed to be managed by a non-profit consortium consisting of several companies called the Libra Association.
- The Diem Association is currently waiting for the Swiss Financial Market Supervisory Authority approval as the organization is based in Switzerland.
- Regulators raised concerns that Facebook’s Libra would have financial stability implications over data privacy and money laundering.
- In April, the Libra Association scaled back plans and said it would offer stable coins backed by just one nation’s currency, rather than a single coin backed by several countries.
- Facebook also had planned to launch a wallet called Calibra, now Novi, that would allow users to send the cryptocurrency to each other.
- Facebook’s Diem is different from Bitcoin since it has a central organization behind it and is backed by a fiat currency.
- The push to Launch Diem and Novi comes at a time Central Banks are exploring their own digital currencies, and China has started real-world trials of a digital Yuan.
Facebook stock is currently declining. FB: NASDAQ is down 0.36% on premarket