While many stablecoin projects have been released over the years –– with some more controversial names in the mix like Tether (USDT) –– Diem has probably the currency which has sparred most with regulators.
But while the regulated path is a challenging, less traveled path, especially when looking at other stablecoins which simply launched and asked for forgiveness later, for Diem gaining regulatory approval has been a critical step to fulfilling its vision of a global digital payments system.
Libra’s Evolution into Diem
In 2020, Libra changed its name and introduced its new and improved version of the project –– Diem. Instead of a global multi-currency stablecoin, Diem will now simply launch as a single-currency coin backed 1:1 by USD. In addition, the Libra Association became the Diem Association, and the Calibra wallet became the Novi wallet.
Diem won’t be tied to any other fiat currencies, at least not at the beginning. Since 1 Diem will equal 1 USD, the hope of the Diem Association is that this version of the Libra project will be more palatable to financial lawmakers, helping the cryptocurrency gain public and regulatory acceptance. In June 2021, it seems the goal was accomplished, with SilverGate Bank becoming the exclusive issuer for Diem in the US.
Check Also: How Diem Works
Facebook’s Novi Wallet Project
While there are a number of digital wallets which can hold Diem Coins, Facebook has been working on developing a wallet of its very own called Novi. Formerly known as the Calibra wallet, Facebook’s Novi has been in development for years. According to developers at Facebook, the digital wallet is ready to launch whenever it gets final approval for its licensing..
The path to a Diem has been a rocky one, but it seems its launch date is now closer than ever. From Libra to Diem, Facebook and the rest of the Diem Association has had to introduce some significant changes to its cryptocurrency project in order to get its approval in both the eyes of the public and financial regulators.