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Facebook's Diem drops Switzerland, refocuses on U.S.

Facebook executive David Marcus

Facebook executive David Marcus at a hearing about the social network's currency, then known as Libra, now called Diem.

Photo: Andrew Harrer/Bloomberg via Getty Images

Diem, the Facebook-backed digital currency, has withdrawn its application for a payment license in Switzerland.

Instead Diem is focusing its operations on the U.S., through a partnership with Silvergate Capital, whose Silvergate Bank will become the exclusive issuer of the Diem USD stablecoin. It is also moving its main operations from Switzerland to the U.S.

"This shift is consistent with Diem's initial strategic focus on the United States and reflects Diem's consideration of the evolving digital currency regulatory environment in the U.S.," Diem wrote in a blog post. Silvergate is a California-chartered bank.

It's the latest shift in the many iterations of the Diem project, formerly known as Libra. In August, David Marcus, the Facebook executive who spearheaded the creation of Diem, took on a new role at Facebook overseeing all of its payment products. He still oversees Novi, a Facebook subsidiary which is working on a digital wallet for Diem.

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