Facebook’s stablecoin project Diem has announced it is to launch a U.S. dollar pegged stablecoin, in the latest paring back of its international ambitions.
The project, formerly known as Libra, had been envisaging a worldwide roll-out for its stablecoin, which it had planned would be pegged to a weighted basket of international currencies. However, run-ins with regulators worldwide have resulted in several significant changes of direction in recent months, with the recent announcement the culmination of its reshaped ambitions ahead of launch.
The Diem Association, which runs the project, said it was moving its headquarters from Switzerland to the U.S., and would be withdrawing its application for a payment system license with the Swiss financial authorities.
Diem is now preparing to register as a money services business with the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury.
A pilot launch of the…