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Cryptocurrencies: Facebook’s Libra becomes the “Diem”

Cryptocurrencies: Facebook’s Libra becomes the “Diem”

By David Derhy, Cryptocurrency Analyst at eToro . – After several twists and turns, Facebook’s Libra project, renamed Diem since the beginning of December, should see the light of day by the first quarter of 2021 at the same time as the release of its Calibra portfolio, also renamed Novi!

Launched in June 2019 by Mark Zuckerberg and the Facebook teams, this stable cryptocurrency project initially faced much criticism from global regulators and the US Congress, taking a dim view that Facebook decides to launch its own stable token backed by a basket of fiat currencies.

But in order to meet regulatory requirements, the Libra project has therefore made four major changes in addition to its name change:

– Offer stablecoins based on a single currency (eg: ≋USD, ≋EUR, and ≋GBP) in addition to the Multi-Currency Cryptoactive (≋XDX)
– Improve the security of the Libra payment system by adhering to a robust compliance framework
– Forgo the future transition to a permissionless system while retaining its key economic properties
– Build in strong protections to protect user funds and assets held by the association.

The Libra association has also applied to FINMA, the federal financial market supervisory authority, in order to obtain a payment system license in addition!
The association made up of several prestigious members such as Iliad, the parent company of Free, Spotify, Uber, Shopify and many others, therefore intends to meet all regulatory requirements.

The hiring of Stuart Levey, the former legal director of HSBC as CEO, also demonstrates this ambition.
But even though some things have changed since the publication of the first whitepaper, the goal of the Diem payment system remains the same: to enable the movement of money in a simple, instant and low-cost way.

Everyone, especially the unbanked, will now be able to send, receive and spend their money, which will allow universal access to financial services.
With more than 2 billion users and by offering Facebook, Messenger, Instagram or WhatsApp users access to cryptocurrencies through interfaces with which we are all already familiar, the launch of Diem could significantly speed up l adoption of cryptocurrencies and is expected to benefit the cryptocurrency industry as a whole.

Thus, the user base of the various sites owned by Facebook and the partners of the Diem project will be able to simply hold and exchange the digital assets created by the company for other cryptocurrencies on most markets. market offering bitcoin or other crypto assets.

With 2 billion new people, not necessarily familiar with this new form of asset, the Diem project will offer a leading gateway for all those who have not yet taken the plunge, potentially further accelerating the adoption of this new asset class!

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