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Summary
- Diem, previously known as Libra, changed its name earlier this month as part of the “independence plan” from Facebook.
- Facebook CEO Mark Zuckerberg initially offered many plans that seemed good on paper, but US senators did not trust its execution.
- The launch date for Diem is still unknown, and some professionals think Diem may never become a real thing.
What was once known as Libra has changed its name to Diem. It is a digital cryptocurrency accessible via American social media conglomerate corporation Facebook.
Facebook CEO Mark Zuckerberg announced the digital currency deal in 2019, when it first started looking for legal approval.
However, the whole project was frowned upon from the start due to a couple of reasons. The watchdogs were not pleased to see that Facebook was supporting Diem (then Libra), and it felt as if the new currency would work against the traditional monetary systems.
RELATED: Facebook-Backed Libra Cryptocurrency Project Scaled Back
The group that runs the project is now called Diem Association, instead of Libra Association. When the currency eventually gets approved, it will be referred to as Diem Dollar.
Diem has now lost a significant amount of support compared to what it had, when it was first announced. In 2019, Mr Zuckerberg pitched the idea to the US Congress, but most of the members raised questions around its goals. The legislators were also concerned about the cryptocurrency due to its provocative nature.
What are the current plans for Diem?
Due to recent pushbacks for Diem, experts believe the cryptocurrency will not have a form as strong as previously thought. Some believe the dollar could back Diem as a single coin. There are also rumours that Diem could launch in January 2021.
The Diem Association has said that it would be possible to use Diem effortlessly and at low cost for highly secure transactions. Every transaction would be backed by a military-grade blockchain technology that protects users’ personal information.
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What was the initial pitch?
The cryptocurrency was first imagined as a single coin that would have an equivalent in traditional currencies for stability.
After that, the creators wanted to issue the novel crypto in multiple coins that would each represent a different fiat currency. In April, the Libra Association had assured that this type of cryptocurrency would be an addition to the domestic currencies and not a replacement.
Facebook had also promoted Diem in its initial stages, saying it could offer a more effortless way of sending and spending money. Moreover, the social media giant had said that it would provide financial services through its app for Diem.
Just like many other cryptocurrencies, Diem would have a digital wallet for coin storage. The wallet, primarily called Calibri, would be the leading platform for online transactions. The wallet app has also been renamed to Novi.
Even though predictions have been made about the time of launch date, no organisation has yet confirmed the official date. Also, with many lawmakers fearing the possibility of Diem disrupting traditional finance, there are speculations that Diem will never see the light of day.
