Diem responds to the letter from the US Senator: Diem is not Facebook and has nothing to do with the Novi pilot

Five Democratic senators from the US Senate Banking Committee wrote to Facebook CEO Mark Zuckerburg on October 19, calling for the end of the launch of Diem and Novi. In response to this matter, the stablecoin project Diem responded that the senators misunderstood the “relationship between Diem and Facebook” and also clarified the relationship with the Novi wallet pilot.

Diem responds to the letter from the US Senator: Diem is not Facebook and has nothing to do with the Novi pilot

According to a previous report by “Betwee”, David Marcus, the head of Facebook’s blockchain, tweeted that Facebook has begun to launch a small pilot of its Novi digital wallet in the United States and Guatemala.

Diem is a stablecoin project that has been stagnant for many years. Novi, a crypto wallet that originally planned to hold Diem, announced on Tuesday that it will use Paxos’ stable currency for its first pilot. The senator wrote in the letter: “We urge you to immediately stop your Novi pilot, and promise not to bring Diem to the market… In addition to the risks that Diem and other products pose to financial stability, you have not yet explained how Diem will prevent Illegal financial flows and other criminal activities provide a satisfactory explanation”.

Diem responded, “ Diem is not Facebook. We are an independent organization, and Facebook’s Novi is only one of more than 20 members of the Diem Association. Novi and Paxos’ pilot projects have nothing to do with Diem. ”

Although theoretically correct, this argument may not be enough to dispel the concerns of US senators.

Diem responds to the letter from the US Senator: Diem is not Facebook and has nothing to do with the Novi pilot

Diem’s ​​predecessor is Libra , and it has close ties with the social media giant, because the stablecoin project was originally proposed by Facebook in 2017, and David Marcus, the chief financial officer of Facebook, is also the co-founder and board member of Diem.

In their letter, the senators asserted that Facebook “cannot be trusted” because the company has taken several actions that ultimately “damage users and the wider society”. It also said, “There is no satisfactory explanation for how Diem will prevent illegal capital flows and other criminal activities.”

Diem defended itself, claiming that it has “the strongest control in the industry.”

Diem said, “In addition to financial crime compliance, we also had extensive contact with an inter-agency supervisory team on the design of the project. As part of the review, we made adjustments based on the feedback we received. Diem is the U.S. government The best-designed stablecoin project I have ever seen.”

Diem finally stated that when the stablecoin project is finally launched, it will confidently “believe that Diem’s ​​payment system is secure, will protect consumers, and will combat financial crime.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/diem-responds-to-the-letter-from-the-us-senator-diem-is-not-facebook-and-has-nothing-to-do-with-the-novi-pilot/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Leave a Reply