The cryptocurrency created by social media giant Facebook is preparing for release with a “phased approach,” explained its co-creator, Christian Catalini. The Diem Association, which is in charge of the development of the cryptocurrency, is in talks with regulators for a license.
The Switzerland-based nonprofit Diem Association plans to release a pilot with a single stablecoin pegged to the US dollar this year.
The pilot will have a small scale and will mostly focus on transactions between individual consumers. An option for people to buy goods or pay for purchases is also taken into consideration.
Facebook announced its plans for a crypto project in June 2019, but the news was met with a strong backlash from regulators worldwide.
The initial plan was for the Facebook currency to serve as a universal one that was tied to a basket of sovereign currencies, like the euro and the US dollar. Following complaints from regulators, Facebook changed the plan and now wants to release several stablecoins backed by different government-backed currencies, although plans for one multi-currency coin remain.
“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,” declared Catalini.
He also mentioned that all members would need to undergo extensive KYC checks, adding that “once we get the green light [from the regulators], we will start experimenting with a small number of users and a small number of players.”