Despite nearly two years of delays and several regulatory hurdles, Facebook’s Libra – now called Diem – is still looking to carve out a place for itself in the crypto space.
Diem Is Still Trying to Move Forward
Facebook first entered the cryptocurrency environment in June of 2019, announcing that it was looking to establish a global payment system and unveil a new digital asset it was calling Libra that could potentially be utilized to purchase goods and services through the social media platform. The currency would be supported by various fiat and stable currencies and was designed to compete directly with bitcoin and many of the world’s assorted altcoins.
The trouble was that this news was announced just a year following the Cambridge Analytica scandal. The company was found to have been selling users’ private data to third parties for advertising purposes for years, and as a result, many people lost trust in the enterprise. The company was slapped with a major fine and went on its merry way.
However, the lack of likes was enough to make Facebook allegedly want to change its image for the people. Thus, the company sought to enter the crypto market with the Libra project, which at this point has had many ups and downs and has garnered mixed reviews from both critics and the public alike. Facebook has already established itself as untrustworthy. If it’s willing to sell users’ private data for profit, imagine what it could possibly do with one’s financial information, which is arguably a bit more personal than one’s birth date.
This was a scary thought that found itself meandering through many people’s heads, and Libra just hasn’t been able to make the dent it initially thought it could. Despite all this, executives are still pushing for the asset’s acceptance, and believe that things could be ready to launch next year.
These are the worlds of David Marcus, the head of Facebook Financial or F2 as it’s known to be called. He says that both Diem (formerly Libra) and the new social media wallet it’s attached to – called Novi – will be ready for release in 2021. In a recent interview, he states:
I hope that we get to participate with… Novi and Diem and the big changes of 2021, pending regulatory approvals where we need to obtain them.
At this stage, it’s unclear if Facebook though changing Libra to Diem and Calibra to Novi would potentially ease tension with regulators. Either way, it doesn’t appear to be doing any such thing, as just a few days ago, German finance minister Olaf Scholz claimed that Diem was nothing but a “wolf in sheep’s clothing,” and that Europe wasn’t likely to roll out the red carpet for the asset anytime soon.
Not Much Trust Has Been Established
We must do everything possible to make sure the currency monopoly remains in the hands of the states.