Diem Association, which is funded by Facebook, is currently planning to begin a stablecoin pilot programme in 2021.

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According to an unnamed source, the first Diem pilot would concentrate on purchases between individual customers.

A digital currency project backed by Facebook Diem could unleash its first stablecoin in 2021 as a small-scale pilot, according to an unnamed source.

Cited in a CNBC report published on Tuesday, the source claimed that the Switzerland-based nonprofit The Diem Association is still intending to launch its pilot for a United States dollar-backed stablecoin later this year.

Back in November 2020, the organisation announced plans for a small introduction of a US-dollar stablecoin in January, but the currency is yet to see the light of day.

Diem’s stablecoin is a drastically reduced and rebranded iteration of Facebook’s original vision for a global digital currency native to its website, bound to a basket of various fiat currencies. Aside from dropping the word Libra, analysts have emphasised Diem’s ongoing reforms in reaction to a strong pushback from global regulators and nation-states.

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According to Ran Goldi, CEO of First Digital Assets Group, the underlying infrastructure of Diem has “changed dramatically over the last year and a half from a naive blockchain to a very sophisticated blockchain that you can see is trying to answer some of the questions that regulators had.” First Digital Assets Group is currently constructing technology for retailers to promote the use of Diem as a payment method.

Meanwhile, Diem is also awaiting regulatory clearance and the issuance of a payments licence by the Swiss Financial Market Supervisory Organization. CNBC commentators were upbeat, with Chainalysis CEO Michael Gronager saying:

“I think it [Diem] will get past the gates this year. It would be a missed opportunity if not.”

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