Diem: Facebook’s cryptocurrency moves to the United States
The Diem association leaves Switzerland and launches an American stablecoin, let’s see in detail what changes
Nove editorial office from Florence
07 July 2021 09:45
https://www.nove.firenze.it/diem-la-criptovaluta-di-facebook-si-trasferisce-negli-stati-uniti.htm
For some time there has been talk of the fact that Facebook wanted to create its own cryptocurrency, which can be used for purchases on the platform, and it should have been made official last year with the name of Libra.
But to date everything has changed, Libra is now called Diem, as the company that manages and follows the project and renounces the license to be recognized as a real payment system, which is issued by the Federal Financial Market Supervisory Authority. which is based, in fact, in Switzerland.
The project will then be transferred to the United States where a stablecoin will be launched, i.e. the Diem company will be registered as an American monetary service business, and will therefore be backed by the dollar.
In fact, this sanctions a downsizing of the initial project, which was not well seen by world banks, however the Diem cryptocurrency will allow you to quickly exchange money around the globe.
When the virtual currency is operational, it will probably be possible to acquire it, as well as other virtual currencies, on special online platforms such as, for example, Bitcoin Rush.
But let’s see in detail what Diem is and what its usefulness can be.
Diem: what is it
Over time, Facebook’s cryptocurrency project has been downsized because it frightened banks and governments, which had highlighted that there was a risk that it could damage the currencies of states, as well as encourage money laundering.
To date, therefore, Diem will be supported exclusively by the US dollar, and not in support of all currencies as was hypothesized during a phase of the project, this downsizing has also led to the loss of strategic partners such as, for example, Paypal, Mastercard and Visa.
The Financial Times reported the news of the change of course and the possible introduction of Diem on the market in January, later taken up by the main world newspapers.
But will Diem work like other cryptocurrencies? In part, yes, in the sense that it is in every way a virtual currency, that is, that can be spent online but does not physically exist. The technology on which it is based will also be that of Bitcoin, that is the blockchain, which is considered very safe. Initially, the diem blockchain will be managed by the project’s founders, although it aims to become a completely open system.
But let’s find out what are the reasons that led to the creation of Diem.
Diem: because it was created
Facebook is the co-founder of the company that will manage Diem and the original purpose was to give the possibility to 1.7 billion users to use cryptocurrency without the need for a bank account.
Previously, Facebook had already introduced a kind of virtual currency, Credits, which could be used to pay for games within its platform.
Mark Zuckerberg, the owner of Facebook, has repeatedly made it known that it was necessary to create a simple and inexpensive system for sending money online, and Diem was created precisely with the intention of being able to make more people access financial services to low prices.
On the other hand, Facebook has everything to gain from this operation, which would probably bring more revenue from advertising into its coffers.
However, it is wrong to think of Diem as Facebook’s cryptocurrency, because although the role of the social network has been fundamental, this is only one of the members of the company that takes care of the project.
From Facebook, in fact, recommendations arrive in this sense, highlighting how every member of the company will have the opportunity to vote and will be able to participate in decisions concerning Diem.
Therefore, although less ambitious than the initial Diem project, it will certainly bring changes in the world of cryptocurrencies, money transfers and online purchases.