In this March 29, 2018, file photo is the Facebook logo on screens at the Nasdaq MarketSite, in New York's Times Square. A once-ambitious Facebook-backed digital currency project — formerly known as Libra, now called Diem — is shifting operations from Switzerland to the U.S. and said it plans to launch a cryptocurrency tied to the U.S. dollar later in 2021. (AP Photo/Richard Drew, File)
By Barbara Ortutay
A once-ambitious Facebook-backed digital currency project — formerly known as Libra, now called Diem — is shifting operations from Switzerland to the U.S. and said it plans to launch a cryptocurrency tied to the U.S. dollar later this year.
As part of the move, Diem said it is also withdrawing its application for a payment system license from the Swiss Financial Markets Authority, which it has not been able to secure thus far.
The Diem Association, which includes Facebook and 25 other companies, said Wednesday has it entered a partnership with Silvergate Capital Corp. to issue a “stablecoin” backed by the U.S. dollar. A stablecoin is a digital currency backed by real-world assets such as national currencies or other commodities.
As the name implies, stablecoins are designed to not fluctuate wildly in value. That's in sharp contrast to cryptocurrencies like Bitcoin, whose value is not tied to a real-world currency and whose price has ranged between roughly $9,000 and $63,000 over the past year.
Facebook announced the Libra project in 2019, at the time envisioning it as a stablecoin based on a basket of national currencies. Since then, the effort has been scaled back considerably amid regulatory and commercial backlash. It underwent a name change in December 2020.
Wednesday's announcement represents a further scaling back as Diem shifts focus to the U.S. from its original ambitions to become a global currency for the unbanked around the world.
Credit Suisse violated a plea agreement with U.S. authorities by failing to report secret offshore accounts that wealthy Americans used to avoid paying taxes, U.S. lawmakers said Wednesday.
Honda is recalling more than 330,000 vehicles because heating pads behind both side-view mirrors may not be bonded properly, which could lead to the mirror glass falling out and increase the risk of a crash.
PepsiCo just unveiled a new nostalgic logo, and it might look familiar to long-time fans of the bubbly beverage. The new logo is a slightly modified version of the one last used in the 1990s.
U.S. highway safety regulators have opened yet another investigation into problems with Teslas, this time tied to complaints that the seat belts may not hold people in a crash.
Kia McCallister-Young, director of America Saves, joined Cheddar News to explain key differences to consider when making a choice between a credit union and a bank. "You want to do your research and know exactly how to gain membership to a credit union," she said, "but, again, banks often are able to be more accessible and be in neighborhoods."
Cheddar News breaks down what to look for on The Day Ahead. The House will hold a hearing on the federal response to the recent banking issues while Starbucks CEO will testify on Capitol Hill about union-busting claims. Disney Parks workers are set to vote on a new contract proposal.
