Diem hastily separates from Facebook under pressure from US senators | Oct 21

The stablecoin project, which Diem hastily diverted from Facebook in response to the immediate shutdown of the Novi wallet by US Democratic senators.

Diem also claims that senior executives have called it “the best-designed stablecoin project the US government has ever seen.”

In an October 19 letter to Facebook CEO Mark Zuckerberg, senators, including crypto critic Elizabeth Warren, expressed “strong opposition to Facebook’s resurgent attempt to bring cryptocurrencies to market” electronic and digital purses.

Yesterday, the Novi wallet was launched in partnership with Coinbase, which has been piloted in the US and Guatemala to allow users to buy, send and receive Pax Dollars (USDP) through their Novi accounts.

Diem feedback that the senators misunderstood “the relationship between Diem and Facebook” and shied away from testing the Novi wallet:

“Diem is not FB. We are an independent organization and Novi from Facebook is just one of more than 20 members of the Diem Association. Novi’s trial with Paxos has nothing to do with Diem. ”

While this argument is technically correct, it may not be enough to allay Senators’ concerns.

Diem was formerly known as Libra and has close ties to the social media giant as the stablecoin project was originally proposed by Facebook in 2017 and is also co-founder of Facebook CFO David Marcus. Founder and board member of Diem

In their letter, the senators claimed that Facebook was “not reliable enough” because the company had taken a series of steps that were “harmful to users and society”. There is still no “satisfactory explanation of how Diem will prevent illegal financial flows and other criminal activities”.

Diem has defended itself by claiming it has “the strictest controls in the business”.

“In addition to compliance with the regulations on financial crime, we worked intensively with a cross-agency management team when designing the project. As part of this review, we made adjustments to reflect the feedback received and were informed by management that Diem is a stablecoin project that is the best the US government has ever seen. ”

Diem concluded by saying that if the stablecoin project is launched, things will go ahead with confidence that Dasm’s payment system will be secure, protect consumers and fight financial crime.

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Annie

According to Cointelegraph

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