Industry News

Libra resurfaces as Facebook Diem and prepares for 2021 launch

TL;DR Breakdown

  • Diem to launch this year.
  • What next after Diem Pilot launch?

After shelving plans to further the Libra project, Facebook Diem, the substitute of the Libra, is set to launch before the end of the year, according to CNBC. Libra, which was aimed at changing the face of fintech and digital payment, was largely opposed to by lawmakers owing to regulatory concerns.

The main fear for Libra was that due to Facebook’s massive users, Libra would be a threat to monetary stability and lead to money laundering.

The Libra idea was dropped due to this and afterward, major backers, Visa and Mastercard, decided to withdraw support for the stablecoin. Creative Facebook, however, reworked the idea behind Libra to come as Diem. This time, the Facebook Diem would not be as controversial as it was previously.

Launching the pilot test of Facebook Diem

Based in Switzerland and in charge of the coin, the Diem association announced that it would launch a pilot test this year. For the pilot launch, a single stablecoin will be pegged to the U.S. dollar.

Reportedly, the pilot launch of the Facebook Diem would be low scale and would be focused primarily on transactions between individual consumers. Users may also be allowed to buy and sell, CNBC reports citing anonymous sources. However, there is no confirmed date for the launch, and the timing could therefore change.

What next for Diem after launch?

Diem undoubtedly has lost several giants that backed the project initially, like Visa, Mastercard, and Stripe. More firms dropped the idea along the line like PayPal, eBay among others.

However, the coin has gone through series of changes, and now a reborn coin is in the making. They are currently negotiating with Swiss financial regulators to secure a payment license that would strengthen its digital currency and place it properly on track. With the support of Facebook, the coin is expected to explode after its launch and undoubtedly become a leading mode of crypto payment.

This post was last modified on April 21, 2021 11:24 am

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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