Facebook (NASDAQ:FB), it is reported, could launch its long-awaited digital currency as early as January 2021 in the form of a U.S. dollar-backed stablecoin. Central banks and regulators have been galvanized into action since Facebook first announced its intentions by publishing a white paper in 2019. They are right to be concerned, as stablecoins — particularly ones such as the rebranded Diem that have the potential for massive network effects — bring new risks to consumers and savers as well as to the global financial system.
Related: What Is Libra? Breaking Down Facebook’s New Digital Currency
Dmitry Tokarev is the CEO of Copper, a crypto-asset infrastructure provider, custodian and a prime brokerage. Copper works with a range of the major crypto exchanges to make trading safer for institutional investors. Dmitry has led finance, asset management and cryptocurrency businesses for years. He has developed proprietary technology in the sector, including the first decentralized finance tool for institutions.