In this article we take a look at the recent developments surrounding Facebook, the Libra Association and its future, and its rebranding to Diem.
Over the past few years, most of us have heard at least once the name “Libra” being mentioned when talking about the mainstream adoption of cryptocurrency and its rebranding to Diem. Those who buy Bitcoin claim that Facebook is going to make a big move in the space. But how much truth does this claim hold? For all we know, the project is constantly being postponed and bashed by the US government, and has lost most of its supporters so far.
After reading this article you can have a better idea about the path of this promising cryptocurrency project.
Libra over the past two years
Libra is Facebook’s attempt to make a digital cryptocurrency that can be used by all of its users. Mark Zuckerberg even announced it back in the day, claiming that it would go public in 2020.
In Senate, the founder of Facebook was heavily questioned about the project he was set to undertake and said that he would not do anything unless it is fully regulated and in par with the wishes of the senate. A short while later, the project as put on hold, and remained inactive ever since.
A short while after that, The Libra Association lost many of its promising partners, who were each supposed to add $10 million each towards the development of the project. Many believed that was the end of Libra with no future. However, for the people over at Facebook, work continued in the shadows.
Rebranding to Diem
Over the past few days, news broke once again with regards to Libra. In The Libra Association’s efforts to distance themselves from the unregulated project idea of 2019, they decided to completely rename their project in Diem (latin for “day”) while keeping their old logo. So what is different about Diem?
The project now has organizational approvals from all involved parties and is going to be ready for its 2021 launch. The original Libra Association will now be known as The Diem Association and according to Bloomberg, the cryptocurrency will be called as Diem US dollar.
Similar to the way we saw the Digital Yuan being released to the public, Diem will also be introduced over time. Its first, limited form will be available to a number of users who will only be able to measure Diem’s value in USD, unlike the initial prosed method that had it linked with the value of various fiat currencies.
According to Stuart Levey, the CEO of Diem Association, “The Diem project will provide a simple platform for fintech innovation to thrive and enable consumers and businesses to conduct instantaneous, low-cost, highly secure transactions,”. In essence, Facebook is creating a regulated US-pegged stablecoin, just one month after the STABLEact is introduced to the public. Many believe that this can be the government fighting back against the popularity of Bitcoin, while also joining the blockchain revolution eventually.
Where do we go from here?
The initial proposal of Libra, according to Mark Zuckerberg was essentially an alternative currency that could be exchanged through the platforms owned by Facebook to conduct more seamless and low cost transactions. In the initial stages of the project, Facebook announced its plans for a digital wallet to support the new currency, known as Calibra. That wallet is now known as Novi.
Everything just happened a little too fast for tech-illiterate people to follow through. Not many trusted the project’s potential to become a reality. At this point, most of the fears and uncertainties have been debunked and the project is prepared to enter the financial world. Not many know the exact date for release, but there is now more confidence that Facebook will not be controlling the issuing and allocation of the funds as a sole “financial institution”.
We will experience many developments that point towards a fully digital currency world – one where people no longer can stack cash and avoid tax payments. Not just that, but third parties can gather even more data on their people, by tracking how every dingle dollar is spent. In time, this should result in more personalized promotions, and increased hardship to control one’s own finances without overview of the state / government.
While it’s currently still in its ideation phase, Diem could be the final drop in an already full glass of privacy intrusion. We will wait & see the future of Libra, or Diem.