Diem could become a white label central bank digital currency (CBDC) provider, according to Citi’s “Future of Money” report, published Thursday.
- The stablecoin project could provide an infrastructure layer on top of that provided by the public sector via CBDCs, the report suggested.
- The Diem white paper made it clear that it is "open to having a discussion with any central bank [that] would be interested in adding [its] currency as a stablecoin on [Diem's] network,” according to Citi.
- This could provide greater functionality and features in the payments sphere, thus driving greater adoption of CBDCs by individuals and companies.
- The backlash saw a number of the project's founding partners pull out, including PayPal, Visa, Mastercard, Stripe and Vodafone.
- It has been argued that interest among central banks to launching digital currencies was at least partly triggered by their consternation over the threat to the financial system posed by a stablecoin operated by Facebook.
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