With the launch of Bitcoin (BTC), many people were introduced to cryptocurrencies for the very first time. However, with evolutions such as Ethereum (ETH), Cardano (ADA), and Solana (SOL), it was clear that cryptocurrencies, as a payment option and as a tool for decentralized finance (DeFi), were the future.
This eventually paved the way for stablecoins, which are pegged to the value of a specific FIAT currency, such as the USD for example. Many other companies would begin their attempts at jumping on this bandwagon, and Diem, the former Facebook crypto project is one of them.
What is Facebook Crypto – Diem
Facebook is now known as Meta, and for years, they essentially reshaped the way we would use crypto social media platforms. They eventually created a Facebook crypto coin.
With the creation of Facebook and the acquisitions of Instagram and WhatsApp, Meta became one of the largest companies that had laid down the groundwork when it came to social media.
Meta is now a social media giant that was originally founded in 2004 by Harvard dropouts Mark Zuckerberg and his college roommate Dustin Moskovitz.
Diem is a cryptocurrency that was formerly known as Libra. It is a permissioned blockchain-based stablecoin payment system. Its plans also included a private currency, which would get implemented as a cryptocurrency.
The launch of this project was originally planned to occur in 2020. However, only experimental code was released, and the project was acquired in 2022 by Silvergate Capital Corporation. Specifically, all of the assets relating to Diem were sold to Silvergate Capital Corporation, which was announced by the Diem Association.
Future of Facebook Crypto Coin – Diem
The Libra cryptocurrency was renamed Diem in 2020.
The Diem Association declared its independence, which followed concerns from regulators around the globe over the project and its potentially negative impacts, such as weakening the banks, money laundering, or breaches in user privacy.
The Diem Association is a Swiss not-for-profit that directs the improvement of Diem.
Going forward, it is likely that Silvergate Capital Corporation will carry on with its development. This is due to the fact that the company has acquired intellectual property, as well as other technology assets related to running the blockchain-based payment network, from the Diem Group.
Diem and Libra Interest Over Time, Blue is Diem, Red is Libra
Image Source: Google Trends
Through an official press release, Silvergate made an announcement surrounding Diem’s development, deployment, and operation tools, where they discussed tools for running a blockchain-based payment network for remittances and other applications.
They mentioned that Diem’s work is running in a pre-launch phase. Silvergate also announced that they intend to launch a stablecoin that is both regulated as well as highly scalable, and this is likely the future that is planned for Diem.
Features of Facebook Metaverse Crypto – Diem
Diem is a rebranding of Libra, which is a centralized, Proof-of-Stake (PoS0 based cryptocurrency project that was originally pioneered by Meta with its goal to solve the financial issues that are faced on a global scale.
The main feature that Diem had was to essentially enable Meta users to buy the stablecoin with regular currencies, such as USD for example, after which they could use the asset as a means of payment anywhere digitally. This would essentially open up the gates towards its utilization on websites, mobile apps, or any other decentralized product.
Diem would get used as digital money. FIAT currencies, which are government-issued currencies that are not backed by a commodity such as gold, cannot be used anywhere in the world. They have to be converted into a country’s native cryptocurrency, and if you want to transfer currencies from one part of the world to another part of the world, this would be a process that can take quite a bit of time to occur.
By converting these currencies into Diem, where users would essentially just buy $10 worth of Diem for $10, they could have a currency that is valid anywhere in the world, where it is supported as a payment method, and the transactions would be near-instantaneous.
We have gone over the history, technology as well as the potential future of Diem. Hopefully, now you have a higher level of understanding as well as a broader perspective as to how all of it works and what you can expect from the project going forward in the future.
As for Meta (formerly Facebook), they are now creating a Facebook metaverse crypto project, however, the former Facebook cryptocurrency will live on in the form of Diem.