Back in 2019, Facebook announced the details for its cryptocurrency, Libra, which is now known as Diem. The token was intended to be a universal currency in the same league as the U.S. dollar and the euro. The Facebook-backed digital coin is expected to launch later in 2021, but in a more limited form and initially will be rolled out to partner with merchants and lucrative partnerships.
Libra, now known as Diem, is a payment system and digital currency based on blockchain technology that was put forward by the tech and social media giant, Facebook, Inc. in 2019. The currency, transaction, and project are managed by Diem Association, which is a Switzerland-based non-profit association. The association is aiming to launch a pilot with the single stablecoin in 2021. Over the recent past, Diem’s technology has drastically changed from a naïve blockchain to a very sophisticated blockchain that will allow real-time e-commerce transactions with Diem stablecoins and provide enhanced user privacy policies. The entire e-commerce transaction will be registered in the books of the Financial Enforcement Network of the U.S. Department of the Treasury. Initially, Libra coin was initially supposed to be backed by a basket of currencies including United States dollar, Euro, Japanese Yen, Pound Sterling, and Singapore Dollar. However, in April 2021, it announced it would offer a single coin backed by currency of only one country. In May 2021, Diem announced it would be seeking approval with the U.S. treasury instead of the Swiss Financial Market Supervisory Authority. Facebook is also launching a new subsidiary which is a digital wallet, called Novi, which will provide affordable access to certain financial services. Diem Association plans to launch two sets of cryptocurrency coin including stablecoin backed with one currency and a multi-currency coin with support for multiple local stable coins for international payments.
The push and efforts to launch to Diem and Novi comes at a time when cryptocurrency such as Bitcoin, Dogecoin, and Ethereum are taking the world by storm. Diem Association is backed by major companies such as Spotify, Uber, Shopify, and Lyft, among others. Even central banks are now exploring their own digital currencies, such as China has begun trials of digital yuan.