Chief economist Christian Catalini said that the Facebook stablecoin project Diem is intended to be a stand-in for CBDCs. According to Catalini, the main goal of the Diem Association is to build a cross-border payment structure around it to build a trustworthy market. Ultimately, the goal seems to be to replace the Diem stablecoin with CBDC in the system. 

Diem sees the cooperation with the central bank as a future expansion of the network as a transitional measure until the launch of CBDC. Before the launch of these CBDCs, the Diem stablecoin will become a means of payment.

By Amy Liu