The digital asset backed by Facebook, Diem, plans to begin a pilot program during this year 2021, marking a major step forward in the cryptocurrency’s growth.
The coin, which used to be recognized as Libra, is scheduled to be released as part of a limited pilot project next month, during which it will only be linked to the price of the US dollar.
As per news from people close to the initiative, exchanges will be confined to individual-to-individual, and the pilot program will be implemented on a small scale at first.
Since Facebook initially revealed a strategy to pursue cryptocurrencies in 2019, the introduction of Diem has been taking some years in the progress. Facebook aided in the development of a group of technological and transactions firms interested in the initiative at the time, which were transaction companies Visa, Mastercard, Stripe, and PayPal.
Diem’s initial attempts, nevertheless, drew the scrutiny of watchdogs around the globe, with many expressing worries about the possible effect of a Facebook digital currency on international financial markets.
The reaction prompted a rethinking of its strategy, and also a rebranding from Libra to Diem, with the idea now becoming much less aggressive than it had been.
Given the legal challenges, Diem representatives have lately stated that the project is on schedule, and that it is already working with a rapid speed toward a final release.
The phased method to release, according to Diem Chief Economist Christian Catalini, is something of the agreed-upon plan with authorities on the path to a possible broader rollout.
“A big step of our dialogue with regulators has been a phased approach to launch. We are going to be phasing in different functionalities and use cases, applications in different areas. […] Once we get the green light, we will start experimenting with a small number of users and a small number of players.”