Diem Responded to Accusations of US Senators

In response to a letter from US senators urging Facebook to put its stablecoin and crypto wallet projects on pause, the Diem project stated that it is not related to Facebook, but is an independent organization.

On October 19, in partnership with Coinbase, Novi Wallet was launched as a pilot in the US and Guatemala, which allows users to buy, send and receive Pax Dollars (USDP) through a Novi account.

On the same day, five US senators in a letter to Facebook CEO Mark Zuckerberg demanded that Facebook stop projects to launch a cryptocurrency and a digital wallet.

The Diem Project responded to the senators’ letter, stating that they misunderstood “the relationship between Diem and Facebook”:

“Diem is not Facebook. We are an independent organization. And Facebook’s Novi is just one of more than two dozen members of the Diem Association. Novi’s pilot project with Pax has nothing to do with Diem. ”

While this is technically true, this argument may not be enough to allay the concerns of US senators.

The Diem stablecoin project, formerly known as Libra, was originally proposed by Facebook in 2017. Facebook CFO David Marcus is also a co-founder and board member of Diem.

In their letter, the senators also argued that it is not clear how Diem will prevent illegal financial flows and other criminal activity.

To which Diem said that the project at this stage has the most reliable control in the industry:

“During the development of the project, we actively interacted with the regulators … The senior regulator informed us that Diem is the best stablecoin project in the United States.”

According to Diem, the stablecoin project will be launched with full confidence in the security of the payment system and consumer protection, in addition, all measures to combat financial crimes will be respected.

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