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USA Focus: Facebook Diem cryptocurrency leaves Switzerland
It should have become a global currency, but the project is getting smaller and smaller. Diem is now withdrawing his permit application in Switzerland and wants to focus on the USA.
Finma announced on Wednesday that it is withdrawing its advanced payment system implementation in Switzerland. Deem Group plans to roll out the payment system outside the United States, as the project targets the United States and depends on the US dollar. For this reason, Diem initially only wants to connect government financial service providers to the system.
Although Finma approval is no longer required for the new plans, Deem has benefited from “a comprehensive licensing process in Switzerland and constructive feedback”, Stuart Levy, DEEM’s chief executive, said in a statement. Finma brought together over a dozen other organizers to review the project.
Libra should give everyone access to financial services
Deem’s cryptocurrency was originally called Libra and was launched by Facebook. It should have been the world’s first purely digital currency. CEO Mark Zuckerberg told the US Congress in 2019 that sending money should be as easy as sending a text message. “More than a billion people in the world do not have access to a bank account.” According to the head of Facebook, if the right system is in place, they can access this access via their smartphones.
The Libra Association was founded in Geneva along with Calibra, PayPal, Ebay, Uber, Spotify, and others on Facebook. The license application was submitted to FINMA in April 2020. The Libra digital currency was originally intended to represent a basket of international currencies. However, the project soon encountered resistance from regulators and central banks, fearing for state sovereignty.
At the end of 2020, the Al Mezan project was completely rebuilt and named Deem. First of all, there has to be what is called a single stable currency, with the cent dollar being a regular US dollar. The next step is the strategic transformation of the United States of America when the company entered into a partnership with Silvergate Capital Corporation.