Facebook Diem is a permissionless payment system that will be launched soon and is based on blockchain technology. The system will soon have a stable coin of its own- which is going to run on the network of blockchain. This falls seamlessly into the movement of this year which has given the world a couple of big blockchain projects, such as NFTs and decentralized finance exchanges which have been centralized.
Facebook’s Libra seems to be at the forefront of the entire movement. Not much time has passed when the media was rife with the world’s largest social media network developing newer plans for a completely new digital currency.
Diem Climbing The Ranks Of Digital Currencies
But, news soon came that Facebook had apparently shelved their plans for the creation of Diem. There were multiple disputes with regulators which definitely had a hand in delaying and redirecting the plans of Facebook a bit. But rather than backing out, the social media company decided to change its strategies and launch a new global digital currency in 2021- rebranding the project to what it has been christened now.
Now although Facebook was the first enterprise to suggest the project for a stable coin, the Diem Association will be the one overseeing the entire operation of the project for the sake of transparency. This Association is simply a body of a couple of companies from multiple sectors of the economy- including fintech, technology, telecoms, nonprofits, and venture capital.
Interestingly, neither the initial coin nor this coin has been decentralized yet. While the goal is definitely to reach a position of not needing permission, the current plan is to help this token run on a permissioned blockchain.
For the future, the main objective of Diem is to simply help the world gain access to a vast multitude of financial services faster and easier. The USD, the Euro, and the British pound will be backing up this project, according to the latest sources.