Facebook-backed Libra Association rebrands itself as 'Diem' to show that the project has 'organizational independence' as it endeavours to get regulatory approvals for the launch.
The project initially received widespread criticism as it emerged out of Facebook and its ambitious aims seemed to threaten traditional government-run financial systems.
About the Project
1- Diem is a Latin word which means 'Day'.
2- With this announcement, the currency will be known as Diem Dollar.
3- Unlike other cryptocurrencies, Diem will use permissioned blockchain-based payment system and is a stablecoin.
4- The currency is projected to be launched in January 2021.
5- Diem Association currently has 27 members.
6- Diem is expected to launch through the Swiss Financial Market Supervisory Authority (FINMA).
Background
| On 18 June 2019, Facebook announced to launch a new type of digital money-- Project Libra. The currency and network do not yet exist, and only rudimentary experimental code has been released. In addition to this, the company also announced to launch a new digital wallet known as Calibra, a separate subsidiary which will be operated by the Facebook and provide users with a way to store and spend Libra. |
What are stablecoins?
Stablecoins are cryptocurrencies backed by a reserve asset. The stablecoins can be pegged to cryptocurrencies, fiat money, or to exchange-traded commodities such as precious metals or industrial metals.
What are permissioned blockchains?
Permissioned blockchains are blockchain networks that require access to allow certain actions to be performed only by certain identifiable participants as they have control layers. They are also known as private blockchains.
What are permissionless blockchains?
Permissionless blockchains are blockchains that require no permission to join and interact with. They are also known as public blockchains.
Responses on Diem cryptocurrency
1- European Union:
The EU has not yet allowed stablecoins to operate within its territory. This is because the stablecoins might be a threat to its monetary sovereignty.
2- United States
The United States did not want Facebook to launch the currency as the cryptocurrency market lacks a clear regulatory framework.
Comments
All Comments (0)
Join the conversation