Had it succeeded, Diem would have introduced two challenges, which have been mentioned publicly on the time, for the federal authorities to wrestle with. Libra’s stablecoin would have launched when the U.S. lacked a complete regulatory framework for stablecoins, which means it could exist in a authorized and regulatory grey area. And, whereas that actuality would pose a problem to the federal authorities, different stablecoin initiatives have and can exist in the identical regulatory grey area. What was completely different about Diem was that its regulatory problem would have been turbocharged by the truth that Fb’s billions of customers would have had entry to this sort-of-regulated, sort-of-not-regulated crypto token in a single day.
