A brief look at Diem, the Facebook Stablecoin.
Stablecoin, a definition
a specific subset of cryptocurrencies that have a value pegged to a real-world asset, such as a fiat currency like the U.S. dollar or a commodity like gold. Examples of widely known stable coins include USDT or Tether, and USDC or US Dollar Coin. source
Diem
The Diem is the current version of Facebooks first attempted stable coin: the Libra. The Diem is a multiple version stable coin. It will launch as a multiple currency stable coin called Libra Coin symbol LBR, and also single asset backed versions. These single currency versions are pegged to and backed by reserves of the multiple governmental currencies. And per the whitepaper it would look like this:
Libra network … single-currency stable coins in addition to ≋LBR, initially starting with some of the currencies in the proposed ≋LBR basket (e.g., LibraUSD or ≋USD, LibraEUR or ≋EUR, LibraGBP or ≋GBP, LibraSGD or ≋SGD). ... Each single-currency stablecoin will be fully backed by the Reserve, which will consist of cash or cash equivalents and very short-term government securities denominated in that currency.
The Diem is scheduled to be released as a pilot in 2021, in a small scale in one unknown country. The Diem Association is attempting to acquire a secure payments license from Switzerland. Facebook has 2.8 billion users worldwide, the largest instant customer base known to mankind, which would have an immediate impact on many countries control over the basic unit of trade: currency.
Diem White Paper Link
Calibra: the wallet built for storing and using Libra, but now Diem.
The Diem Association
The Diem Association, a Switzerland based non-profit corporation, and per the Diem whitepaper on December 1, 2020, the Libra Association was renamed to Diem Association, is charged with oversight of the stable coin the Diem.
Mission Statement:
The Libra Association’s mission is to enable a simple global payment system and financial infrastructure that empowers billions of people.
source
Note that this mission statement is from the Diem Whitepaper, but it still refers to the token as Diem association as Libra Association, which is probably an edit error, as they most likely adopted much of the Libra Whitepaper into the Fiem white paper, but carefully edited out all references to objections raised by US Rehulators.
Question, am I the only one getting a world domination vibe from this statement? LOL.
Facebooks first attempt to launch a a Stablecoin was called Libra.
Libra
The Libra, a stable coin originally announced in June 2019, (before the Coronavirus Pandemic), resulted in Facebook receiving intense Government and Regulatory attack in the US and Europe, it lost all its financial backers, including Visa and MasterCard. It was seen as a threat to monetary stability which would facilitate money laundering and reduce governmental control over the money supply. The Libra, as originally proposed, was backed by a basket of international currencies, including the US Dollar. As a peer to peer digital currency, it would have worked outside the current regulatory framework for currencies, and many observers felt it was this loss of control more then any real risk of money laundering, that triggered the intense response and the political and governmental pressure, that caused its backers to withdrawal. Facebook has 2.8 billion users worldwide, the largest instant customer base known to mankind, which would have an immediate impact on many countries control over the basic unit of trade: currency.
See these articles for further details about Facebook Libra:
Facebook launches a new cryptocurrency called Libra https://www.cnbc.com/2019/06/17/facebook-announces-libra-digital-currency-calibra-digital-wallet.html
Facebook Libra White Paper https://www.diem.com/en-us/white-paper/
Last words
Like everything in this space, forked or modified versions of cryptocurrency tokens and projects continually arise, and the importance of stable coins in the stability of the current financial system, both crypto based and traditional, can’t be underestimated.
As stablecoins have emerged as the most powerful cryptocurrencies in terms of market cap, daily volume and as stores of value they are probably going to be the asset banks, globalists and industrialists like Zukenberg will fight over.
So keeping abreast of news in this area is important.
Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance.
Read more of shortsegments articles here: @shortsegments
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