The stablecoin project, Diem linked to Facebook today denied allegations of its ties to the world’s largest social media network following warnings from the ranks of the United States (US) senate.
For the record, CEO Mark Zuckerberg has received letters from the senate including crypto critic Elizabeth Warren calling for the launch of stablecoin, Diem and the crypto wallet, Novi to be stopped.
As a result, Diem explains:
"Diem is not Facebook. We are an independent organization and Novi Facebook is just one of twelve members of the Diem Association. Novi's test with Paxos has nothing to do with Diem. "
Still, is this explanation enough to allay the concerns of U.S. senators?
Recently the Novi wallet has launched a partnership with Coinbase, including being tested for use in the US and Gautemala. The testing involves the purchase, delivery, and receipt of Pax Dollars (USDP) through a Novi account.
While Diem, was indeed from the beginning linked to Facebook as the idea of stablecoin started from this giant platform in 2017.
Not enough of that, Facebook’s Chief Financial Officer, David Marcus is a co -founder and board member of the Diem Association.
Accused of being “unreliable” through a senate letter, Diem claimed that when the stablecoin was launched, it would be distributed to consumers with the guarantee of a secure payment system, along with consumer protection and would tackle financial crime.
