Disclaimer: all info provided in the article is just a particular view and opinion about Diem stablecoin from Facebook.
Facebook have announced in 2019 they interest in building an ecosystem that could release a global system of payments, and to that happen the biggest corporation media founded an association to host all related stuff concerning the asset from the giant company. This entity was called Libra Association, and the native coin dubbed also Libra.
The main mission of this association was to convince more partners to join the cause to create the first global digital system of payment, and soon realized that the coin would be a coin without volatility and pegged to main Fiat currencies from US Dollar, Japan Yen, European Euro and many other sovereign currencies. To continue their work without problems the giant media and the association took different headquarters and staff with Mark Zuckerberg hiring managers to conduct all activities concerning the Libra project.
Since June of 2019 when the project was announced soon received some bad feedback from regulators and voices around the spaces also showed strong opposition to the new trend of the giant corporation adventuring to the financial market. The strong hand against the project, took regulators to scrutiny Libra stablecoin who forced the project to slow down and look for alternatives to curb the regulator issues. This issues associate with Libra took the CEO Mark Zuckerberg to the Senate to explain what are the plans from Libra to safeguard the users financial info and how this stablecoin actually will work.
When the hearing started the association was already with plenty of partners to develop the project and at the time were 28 associates, but due to the regulator problems some of them withdraw from the project and followed their own aspirations in the crypto space.
Why the projects is considered dangerous for sovereign stability.
The project from the giant media, former known as Libra rebranded to Diem stablecoin, clearly poses as dangerous to many countries financial stability, in Europe for example, they even banned it to show up on their market without a specific plan in how the system of payment will work as many of European countries see the project like a threat.
If their thoughts are true I don't know but they have some reasons to be concerned!
The giant media company have almost 2.7 billion active members all over the world, which are the main target for the Diem association stablecoin. This members are located all over the world and the stablecoin will be the main payment system to be used within the platform to send, receive and borrow money from.
with Diem users on facebook can transfer money, receive, borrow without need to leave the platform and without need to hold a bank account- this oblivious will piss of the financial entities.
Despite the platform said in one of main appearance, will conduct a Know-your-customer (KYC) to ensure to complain with US laws there are places in the world that Facebook will not need all those details to make people use their services, in fact the giant media company have all necessary info they need to make anyone in the world to use their service.
Giving an example for what I mentioned above, the giant company even without asking to verify my account at the platform they already have all my data info, because when they blocked my account in order to recover it they asked my I.D card which I gave them. Without noticing they already have my personal info, wish can be used to use the Diem services.
Of course that isn't all legal but I believe that companies with that large userbase and with influence in the world have many tricks, in Europe the company also face the biggest opposition due to their lack of data, which several times got leaked exposing the most sensitive info about users...imagine that the leak shows up users financial data!! That could be catastrophic.
Diem is prepared to debut in early 2021?
That is a question that can only be answered when the project get released, they have the staff to work on it, Zuckerberg didn't take this easily, he hired big figures in the financial, security and marketing space to make the project a reality. The issue is that no regulator authority have issues they "free pass" to Diem even the Switzerland financial service still to decide if they approve the project.
2021 will be a year of many surprises, and Facebook could finally show the world what have been preparing for a Year and half.
The world payment system is about to change in the traditional sector!
Stay tuned and have a wonderful Sunday.
