Stablecoin project Diem says we are not Facebook

In response to the letter of US senators regarding crypto Novi wallet, Diem said that we are not Facebook.

A few days ago, Facebook’s blockchain development team announced the launching of the Novi wallet and ensured the security for the Novi wallet through the custody of assets by Coinbase firm. But in response, Elizabeth Warren along with 4 other senates issued a notification letter to Facebook and urged them to stop their Diem & Novi wallet operations because Facebook is not safe for people. 

Warren took the reference of ongoing allegations on the Facebook data leaks & data sale and claimed that crypto is already facing high volatility and now we don’t want to compromise with the user’s data in decentralized space. 

Now, in response to the letter of US senators, the blockchain entity of Facebook stated that they are not Facebook and they are independent of the operations of Facebook.

Further, Diem appreciated their work for their stablecoin, which was praised by the US regulators. Deim added 

” US regulators said it was the best-designed stablecoin project that the U.S. government had seen.”

Through the response letter, Deim asserted that US senators are in misunderstanding because Facebook and Novi wallet are independent. Through the letter, Diem also tried to indicate that Deim is also independent of Novi wallet. 

“Diem is not Facebook. We are an independent organization, and Facebook’s Novi is just one of more than two dozen members of the Diem Association. Novi’s pilot with Paxos is unrelated to Diem.”

Experts believe that the response letter to explain the raised concerns of the US senators, technical right. But it is not enough to bring Clarity to the raised issues. 

Novi wallet support for the Facebook user base 

In the recent response letter, Deim tried to confirm that Novi is independent. But here Deim forgot that in the past, Facebook confirmed that they will get an advantage because of their huge user base on Facebook social media. 

So clearly, here Deim is trying to pretend that Novi wallet is independent.

Read also: AMC Entertainment mulling to launch own crypto