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Facebook promoted Diem to launch its digital currency - TCR

Finance

www.thecoinrepublic.com 21 April 2021 09:34, UTC
  
Reading time: ~2 m

The new avatar of Libra is Diem

• Diem Association brings forth a single stablecoin linked to the U.S. Dollar in 2021.

• Nonprofit, Swiss-based The Diem Association will oversee Diem’s development

• Major changes enforced to allay fears of financial institutions.

The CNBC reports that Facebook-backed Diem aims to launch a digital currency pilot later this year. Formerly known as Libra, The Diem has undergone a complete changeover and today is bound to get greater acceptance than the opposition in its earlier form.

When Facebook backed its version of digital currency Libra, it faces stiff opposition from significant regulators worldwide. One of the reasons was the concept of cryptocurrency was in its infancy, and not much was known about it. Today much water has flown, and opposition has changed into evolving to the latest concept of finance.

The CNBC reports that the Diem Association is to bring forth a single stablecoin that will be linked to the U.S. Dollar in 2021. However, unlike the Libra, Diem will be completely different. Facebook has learned its lesson well. Unlike in 2019, when it promoted Libra and proposed to tie it to several currencies like the Dollar and Euro, this time, it is launching

multiple “stablecoins” linked to different government-backed currencies, as well as one multi-currency coin.

Stablecoin pilot project

Nonprofit, Swiss-based The Diem Association will oversee diem’s development. The Diem will be a single stable coin and linked to the U.S. Dollar. CNBC quoting an anonymous source revealed that the details are still under wraps, but some elements are evident. The transactions will be mainly between individual consumers. Additionally, an option for users to buy goods and purchases could also be there the person added.

Facebook’s broad reach gives jitters to the central bank.

CNBC quoted Michael Casey, the chief content officer of the cryptocurrency publication CoinDesk. A former financial journalist said that the way Libra faded out of the public domain is quite striking. With 2.8 billion monthly active users gave jitters to central bankers and politicians who feared it could threaten financial stability. Many analysts like Cassey still feel that Diem posed a threat to the dominance of the U.S. dollar. However, there are backers for the Diem like Ran Goldi, CEO of First Digital Assets Group, which builds a framework to allow traders to accept Diem as a payment method.


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