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What is Facebook’s Diem?

What is Facebook’s Diem?

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Do you remember Facebook’s cryptocurrency project called Libra? On 1st December 2020, The Libra Association announced a new name called Diem. The project is also on-boarding top professionals for the Diem Association and Diem Networks.

The original idea

The idea behind Libra is to introduce a stablecoin, a cryptocurrency backed by the US dollar, Singapore Dollar, and UK Pound Sterling.

However, shortly after the announcement, Libra faced extensive scrutiny from the US governments and regulators. The project halted until recently, after getting clearance from the regulators.

Is Diem the same?

The mission is still the same to build a trusted and innovative financial network that empowers people and businesses globally. Ultimately, providing access to affordable and safe financial services.

Diem will offer a payment system with these elements in mind;

  1. Mobile – accessible with entry-level smartphones and data connectivity
  2. Stable – backed by a reserve of assets.
  3. Fast
  4. Global
  5. Scalable – the Diem open-protocol will allow developers in the community to build products and services.
  6. Secure – the protocol is leveraging blockchain technology designed with better security.

The anticipated launch

According to the recent announcement, Diem will finally see the light in early 2021. Unlike originally planned, Diem is a stablecoin pegged to the US dollar.

If Diem can launch successfully, it will be a breakthrough, especially from a big tech company. Moreover, Facebook will be able to provide 2.7 billion users the access to financial services.

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The products and services

However, it is still uncertain the type of products or services Diem will offer. The biggest hint is probably the members of the Diem Association.

Few names as the Diem Association members are Coinbase, Lyft, Shopify, Spotify, Temasek, and Uber. The full list is accessible by clicking here.

There are still plenty of uncertainties on how Diem will be delivered and accepted. However, looking at the recent developments and acceptance of stablecoins should propel Diem in the right direction.

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