Facebook is going to introduce a new cryptocurrency project. After the first unsuccessful attempt to launch its own digital currency, the company decided to try again to jump on the crypto bandwagon. FB is sure it will revolutionize finance with its global digital currency, Diem.
Notably, Facebook’s application for a payment system license has recently been filed with the US regulator after its initial application with the Swiss financial regulator. The Swiss Financial Market Supervisory Authority also confirmed that Diem decided to withdraw its application for a payment license. "Diem is planning to launch the payment system from the USA in a first phase because initially the project will focus on the USA as its target market," the company said. "We are committed to a payment system that is safe for consumers and businesses, makes payments faster and cheaper," the association added.
Facebook first unveiled plans for Libra in June 2019. The company expected to power transactions between consumers and businesses with the coin around the globe in the first quarter of 2020. Yet, the Libra project faced fierce opposition from policymakers globally as they expressed concerns that the new cryptocurrency might erode their control over the money system. Therefore, Libra rebranded as Diem so that the company could renew an effort to gain regulatory approval. In addition, the former name was a reminder of an unsuccessful attempt.
