The Swiss non-profit Diem Association plans to launch a pilot project with a single stablecoin pegged to the US dollar in 2021. The association oversees the development of Facebook’s digital currency.
According to a report, this pilot by Facebook will be small in scale. It will primarily focus on transactions between individual customers. There could also be an additional option for users to purchase goods and services. This is a much more modest expectation for Facebook’s digital currency than proposed initially in 2019.
Facebook initially proposed its digital currency project in June 2019, under the name Libra. At that point, the project had the much larger ambition of acting as a universal currency. Its value would have been tied to a basket of sovereign currencies such as the USD and EUR.