Citi: "Diem can become a provider of infrastructure for the issuance of state cryptocurrencies" – Bits Media

According to the White Paper of the Diem stablecoin project (formerly Libra), the project team is ready to enter into a dialogue with central banks and provide infrastructure for issuing state cryptocurrencies.

Citi's Future of Money report says, what the project Diem can become a supplier of services for the production of state cryptocurrencies for central banks. As analysts noted, Diem can provide infrastructure levels on top, which is provided by the public sector through the digital currency of the Central Bank.

The White Book of Diem indicates, that the project is open to discuss with any central bank, which would be interested in adding its currency as stablecoin to the Diem network. This could ensure greater functionality and opportunities in the field of payments, Thus contributing to the wider acceptance of state cryptocurrencies to individuals and companies.

Diem is not the first project, whose team was thinking about providing infrastructure for the release of state cryptocurrencies. In March it became known, that Ripple is testing a closed version of the blockchain, which will provide central banks with a safe, controlled and flexible solution for issuing and managing government cryptocurrencies.

Last December, Libra Association announced rebranding the Libra project, To distance yourself from the initial concept of Facebook and gain the trust of regulatory authorities. The Association is called Diem Association, and steakblcin was dead in diem. Besides, The developers reported, that Diem will be attached to the US dollar in the ratio 1:1.

In the last year, it was repeatedly declared, that the interest of central banks in the release of digital currencies was, at least, partially caused by fears about the threat of the financial system, emanating from the controlled Facebook stablecoin. Earlier this month, the Japanese Bank called for the creation of general rules for the release of state cryptocurrencies, And in the UK, a working group for the production of state cryptocurrency was created.