Facebook's cryptocurrency [Diem] is to be the ancestor of the e-dollar

Another turn in the development plans of the cryptocurrency created under the auspices Facebook. It was supposed to be first Poundbased on a wide basket of fiat currencies. later diem, or stablecoin reflected only and exclusively in the US dollar. But now the plan has changed again. Diem is to be the beginning of the e-dollar and disappear when the CBDC cryptocurrency, developed at the request of the American administration, becomes operational for good.

The cryptocurrency signed by Facebook is undoubtedly a token that is talked about a lot, and certainly the most famous cryptocurrency that has not yet been created. The first announcements about the new digital money, which Facebook was to create together with its partners, appeared in the first half of 2019. It was then announced that it would be something like a stablecoin, the value of which would be reflected in a wide basket of fiat currencies. It was supposed to be universal and global money, which could be used to pay directly on Facebook, as well as transfer it between private persons and companies in Messenger application. No wonder that the representatives of the US government and the federal reserve did not like it, because it could quickly turn out that the supremacy of the US dollar is under threat. Ease of use, security, as well as resistance to high volatility on the cryptocurrency market - all this will certainly make the new cryptocurrency quickly take over a significant part of the market, especially among young people. And it is known that they will not return to traditional money later. 

Libra has turned into Diem

However, under the pressure of institutions and the announced sanctions and informal pressure, more companies began to crumble from the project. Even the name of the cryptocurrency was changed, because Libra was already so controversial that a new brand was necessary. And yes Libra has turned into Diem, but not only the name has changed.

Stablecoin yes, but only USD based

Dim was no longer supposed to be a basket of fiat currencies, but to rely solely on the US dollar. Silvergate, a state-licensed California institution, became the partner of the association working on its development. During the conference "Consesus 2021" Christian Catalini, Diem's ​​chief economist, revealed further details on which Bitcoin evolution these are slow and almost imperceptible changes to the code and the whole project. 

- We propose an approach similar to public-private partnership. We treat Diem as a temporary token in which partners like Silvergate will act as issuers. But as soon as CBDC (Central Bank Digital Currency) appears, it will change. We are the only stablecoin issuer to have publicly committed to withdrawing its own token and replacing it by CBDC - said Christian Catalini in the pages of Coindesk. - Our original vision of the cryptocurrency was a bit naive and it quickly turned out that it did not withstand the clash with the regulations strongly defended by the government and the central bank - he adds.

What's next for Di?

The project will absolutely not be suspended. Everything indicates that it will be ready much earlier than CBDC. For the US federal reserve, launching Diem is also a good solution, because all possible shortcomings will be fixed at the beginning. 

After Diem is replaced by CBDC, Facebook's cryptocurrency team will develop payment services using the new, official digital money. And so a private solution will allow you to build a public structure on which both parties will then be able to earn money.