In response to a letter from the U.S. vocation on Facebook to halt its stablecoin and crypto billfold comes, Diem expressed that it “is not Facebook. we are an freelance organization”
Stablecoin project Diem has distanced itself from its Facebook in response to Democrat Senators calling for the immediate cessation of the firm’s Novi crypto wallet.
Diem additionally claimed senior regulators had known as it “the best-designed stablecoin project that the U.S. government had seen.”
In an Oct. 19 letter sent to Facebook CEO Mark Zuckerberg, the Senators together with crypto critic Elizabeth Warren, voiced their “strongest opposition to Facebook’s revived effort to launch a cryptocurrency and digital wallet.”
Earlier that day the Novi wallet was launched in partnership with Coinbase, with a pilot within the U.S. and Guatemala to modify users to shop for, send and receive salutation bucks (USDP) through their Novi account.
Diem’s response to the letter expressed the Senators had misunderstood the “relationship between Diem and Facebook,” whereas additionally distancing itself from the Novi pocketbook pilot:
“Diem is not Facebook. We are an independent organization, and Facebook’s Novi is just one of more than two dozen members of the Diem Association. Novi’s pilot with Paxos is unrelated to Diem.”
While technically true, the argument might not be enough to squash the considerations of the U.S. Senators.
Diem was erst called Libra and has sturdy ties to the social media big, because the stablecoin project was initially projected by Facebook in 2017, and Facebook’s money Head David Marcus is additionally the co-founder and a member of Diem.
In their letter, the Senators declared that Facebook “cannot be trusted” because the firm has created many moves that ultimately “harmed its users and therefore the broader society.” It conjointly said there has not been “a satisfactory rationalization for a way Diem can stop illicit money flows and different criminal activity.”
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Diem defended itself by claiming it's the “most strong controls within the business.”
“Beyond money crime compliance, we tend to engaged extensively with an inter-agency regulative team regarding the look of the project. As a part of that review, we tend to created changes to mirror feedback we tend to received, and that we were up on by a senior regulator that Diem is that the best-designed stablecoin project that the U.S. government had seen,” Diem said.
Diem over by voice communication that once the stablecoin project finally launches, it'll do thus with “confidence that Diem’s payment system is secure, can shield shoppers, and can combat money crime.”