In response to a letter from a US Senator Calling Facebook to halt its stablecoin, digital wallet and digital wallet project, Diem said, “We are not Facebook, we are an independent entity.”
Diem also claims to have been notified by senior regulators, calling it “the best designed stablecoin project the US government has ever seen.”
In a letter on Oct. 19 to Facebook CEO Mark Zuckerberg, senators as well as crypto critic Elizabeth Warren addressed “the strongest opposition to Facebook’s revitalization efforts in the launch of the . Cryptocurrency and digital wallets.”
The Novi wallet was previously launched in partnership with Coinbase on pilot projects in the US and Guatemala. To allow users to buy, send and receive Pax Dollars (USDP) through their Novi account.
actionrespondDiem’s per letter states that Senators are misunderstanding about “Relationship between Diem and Facebook” includes the Novi wallet project:
“Diem is not Facebook, we are independent and Facebook’s Novi is just one of the members of the Diem Association, and Novi’s pilot project with Paxos has nothing to do with Diem.”
Such retaliation, although technically true. But it may not be enough to dispel the concerns of the US Senator.
Diem was formerly known as Libra and has strong ties to the social media giant. Since the stablecoin project was first proposed by Facebook in 2017, Facebook’s chief financial officer David Marcus is also a co-founder and board member at Diem.
The U.S. senator insisted that Facebook “cannot be trusted” as the company made several moves that ultimately did. “Hurting users and the wider society”, also said that there is no “A satisfactory explanation of how Diem will protect against illegal financial flows and other criminal activities.”
But Diem defended himself, claiming that he had “The strongest control in the industry”
“In addition to complying with financial crime laws, We also engage extensively with interagency supervisory teams on project design. And we have made adjustments to reflect the feedback we receive. Plus, we were told by senior regulators that Diem is the best designed stablecoin project the US government has ever seen,” Diem said.
The post “We are not Facebook” : Diem retorts senator over ending the “Novi” digital wallet pilot project appeared first on Bitcoin Addict.