In 2021, the much-discussed digital currency of Facebook is expected to be released, although completely different from what was announced two years ago. Diem will be launched on a very limited scale, and will be directly linked to the US dollar, something that was not originally designed by Facebook.
It is recalled that when it was first announced, cryptocurrency was presented as something revolutionary, independent of the “traditional” currencies, which would give all people and especially those outside the banking system, the opportunity to join the global financial system.
The cryptocurrency was originally called Libra and was designed by a multi non-profit company, called the “Libra Association”. Facebook also planned to launch the Calibra digital wallet so that users could send cryptocurrencies to each other.
The Libra was originally intended to be backed by a number of real currencies. International regulators, however, have expressed strong concerns about the impact of cryptocurrency on the balance of the financial system, as well as personal data and money laundering issues.
The new currency, Diem, is described as another cryptocurrency, but it differs significantly from bitcoin, the main player in the cryptocurrency market. Unlike bitcoin, it is supported by a central organisation, as well as fiat currency.
According to CNBC, it will be released on a small scale and will focus on large transactions by individual consumers. Purchases may also be possible, but this is not certain, nor is the exact date when the currency will be available.