When Libra was first announced in June 2019, there was a lot of hype surrounding it. For most people, Diem (Libra) was supposed to be the next big step for the crypto industry. The Facebook-backed cryptocurrency was planned to be released in 2020. However, due to regulatory pressures, there is a lot of uncertainty surrounding Libra, and as of 2023, these uncertainties persist. As Zatrun.com, we’ve compiled everything you need to know about the project. Let’s take a look together.
What is Diem (Libra)
The initial plan involved launching a true blockchain-based cryptocurrency in collaboration with the non-profit Libra Foundation. The original Libra coin was intended to be a cryptocurrency and a direct competitor to the global fiat currency market. The hype behind the project was due to the high expectations it held. The idea behind Libra was to create a peer-to-peer (P2P) payment system that would encompass Facebook Messenger, and subsequently, WhatsApp and Instagram.
Payment giants were also involved in the project, Visa, MasterCard, PayPal, and Stripe. On paper, it looked like the next big crypto project that would achieve instant success. However, the US government attacked the project with regulations.
The project was put in a difficult position by lawsuits from both the United States and the United Kingdom governments. In March 2020, Facebook announced that it would review the project due to pressure. In December, the project was rebranded as Diem after Facebook announced that Libra would be renamed. According to Facebook, the project would now support Diem, a currency that has been approved by both states.
Journey of the Project
Diem is designed as an authorised blockchain-based payment system and will be implemented as a cryptocurrency. The Diem Foundation supporting the project is made up of 27 members, including Facebook. Unlike its previous version, Libra, the cryptocurrency project has a more flexible authorisation. The cryptocurrency was designed to complement fiat currencies and will not replace them. Simply put, this asset will be a stablecoin. The value of the asset will follow the US dollar at a 1:1 ratio. Therefore, it will have a wide range of use cases.
The project aims to create a “reliable and innovative network that empowers people and businesses worldwide.” Facebook has 2.7 billion users worldwide and will offer them the ability to make instant payments. The coin is believed to be a viable alternative for those who do not have a bank account and could also help people save money. The asset will be launched with a crypto wallet called Novi. Users will have the advantage of buying and selling their Diems with Novi, as well as using it as a payment method.
When Will Diem Be Released?
Diem was expected to be released in 2021, but it did not materialize. Recent sources show that project managers have decided to sell the network’s rights and other assets to Silvergate Capital. Therefore, the Diem stablecoin project may never become exposed. However, there are also sources indicating that Facebook’s Libra team will continue under a new name called Aptos. Therefore, the cryptocurrency may never be released or may still be launched under a different name.