Facebook-backed digital currency project to leave Switzerland
Facebook-backed digital currency project formerly known as Libra, now called Diem is shifting operations from Switzerland to the US (file photo)
Ap
The Facebook-backed digital currency project formerly known as Libra, says it is shifting operations from Switzerland to the US. Now called Diem, it has withdrawn its Swiss licence application.
Geneva-based Diem said it planned to launch a cryptocurrency tied to the US dollar later this year.
External Content
2/4 Diem is simplifying its plans for a Diem USD stablecoin issuance by moving its main operations to the US, bringing the project into the US regulatory perimeter. Diem will run its blockchain-based payment system from the US.
Diem said it was withdrawing its application for a payment system licence from the Swiss Financial Markets Authority FINMA. It has not yet been able to secure a licence from the Swiss financial oversight authorities.
“The project has benefited greatly from […] the constructive feedback from FINMA and more than two dozen other regulatory authorities from around the world convened by FINMA […]” Stuart Levey, Diem’s CEO, was quoted as saying in a Tweet from the company on Thursday.
The Diem Association, which includes Facebook and 25 other companies, said it had entered a partnership with Silvergate Capital Corp. to issue a “stablecoin” backed by the US dollar. A stablecoin is a digital currency backed by real-world assets such as national currencies or other commodities.
Facebook announced the Libra project in 2019, at the time envisioning it as a stablecoin based on a basket of national currencies. Since then, the effort has been scaled back considerably amid a regulatory and commercial backlash. It underwent a name change in December 2020.
More
The Swiss banking world tries to reinvent itself
A new financial infrastructure promises to transform the way money flows across the globe.
What can be done to protect biodiversity in your country?
Swiss voters are set to decide on a people’s initiative calling for better protection of ecosystems in the country. Have your say on the September 22 vote.
Zurich Film Festival to host 35 world or European premieres
This content was published on
A host of stars are expected at this year's Zurich Film Festival (ZFF), which celebrates its 20th anniversary on October 3.
Switzerland’s population crosses the nine million mark
This content was published on
The permanent resident population in Switzerland exceeded nine million people for the first time at the end of June this year.
Swiss foreign ministry expresses concern after explosions in Lebanon
This content was published on
The Swiss Federal Department of Foreign Affairs has expressed its deep concern following the explosions in Lebanon on Tuesday. In a post on X, it calls on all parties to exercise the utmost restraint in order to prevent a major regional escalation.
Switzerland receives UN mandate for meeting on Middle East conflict
This content was published on
Switzerland will organise a meeting of the parties to the Geneva Conventions on the Middle East conflict within six months.
Meyer Burger replaces top management and cuts 200 jobs
This content was published on
The ailing solar company Meyer Burger is attempting to break free with a new restructuring programme. The CEO is leaving the company. Numerous employees will also lose their jobs.
Swiss study: kindergarten children calculate much better with their fingers
This content was published on
Counting with their fingers makes kindergarten children better at arithmetic, according to a study by the University of Lausanne.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Revamped Libra stablecoin applies for Swiss license
This content was published on
The cryptocurrency project has applied for a Swiss payment system license after tweaking its design to meet regulatory concerns.
Building a digital assets corridor between Switzerland, Japan and Singapore
This content was published on
When Swiss and Asian expertise join hands to profit from emerging financial technologies, such as blockchain-inspired crypto assets.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.