Christian Catalini, chief economist of Facebook Diem, made statements about Diem at Consensus 2021. Details are in our news.
Important statements from Facebook Diem’s chief economist
Diem’s (formerly Libra) chief economist Christian Catalini said that the recently announced Diem USD stablecoin is the US Federal Reserve digital currency He said it is only intended as a temporary step until the issuance of a CBDC or digital dollar.
Facebook’s stablecoin Diem, which has recently decided to move its project headquarters from Switzerland to the USA, is expected to be released towards the end of the year.. Catalini speaks on Consensus 2021 program. He stated that Catalini Diem will be removed if there is a digital dollar to be issued by the Fed.
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“If there is a coin like a digital dollar issued by the Fed , we can eliminate the diem dollar. This has to do with stability, preservation of monetary value and macroprudential policy. We don’t want to change that. In fact, we want to develop and leverage this infrastructure to accelerate usage for consumers both locally and globally.”
Catalini also stated that Diem would not rely on the interest income from the reserves backing the tabcoin.. Reserves will be mainly in the form of treasury bonds with maturities of less than 90 days.. Diem envisions a small wallet that can compete with a larger wallet due to interoperability, increased competition and consumer preference.
Talking out the criticisms about privacy and competition, Catalini stated that they will expand privacy.
“At Diem, privacy will be by design, and we also want to promote privacy as a dimension of competition on the network. .”
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