Facebook is one of the most popular social media platforms in the world, but the company has other interesting projects as well. Interestingly, Libra (now Diem) is a payment system from Facebook. People should take into account that, Libra (Diem) is based on a permission blockchain that is expected to power an ecosystem for digital payments as well as other financial services.
Importantly, it’s currency, called Diem dollars (formerly Libra), will be backed by a basket of stablecoins. The currency most likely will appear in 2021. It is no secret that digital payments offer many opportunities.
Let’s learn more about Facebook and its digital currency Libra (Diem). Interestingly, Libra (rebranded to Diem) is a blockchain-based payment system proposed by a social media giant in 2019. The goal is to provide access to financial services to people without a bank account.
People should take into account that, the launch was originally going to be in 2020. However, due to various reasons, it was not possible to launch Diem in 2020.
Why Libra (Diem) is different from other payments systems
Interestingly, the Libra administration (now the Diem Association) will be in charge of Diem. It is an independent membership organization whose headquarters are in Geneva, Switzerland. Importantly, members include companies from various sectors. Notably, blockchain, technology, payment, telecommunication sectors, venture capitalists, as well as non-profits.
It is worth noting that, the members of the association are responsible for governance decisions, overseeing the operation of the payment system, etc. The tech giant aims to have 100 members in this association by launch. In the past, Facebook struggled to gain approval from regulators. Due to this, Facebook and other members of the association should work with authorities to address all issues. It won’t be easy to persuade regulators in the U.S. and other countries. Diem Association should join forces with authorities to reach this goal.