Facebook hopes to test its Diem cryptocurrency this year
Facebook hopes to test its Diem cryptocurrency this year

Facebook hopes to be able to offer a beta version of the cryptocurrency proven Diem project later this year.

The coin was originally announced as Libra in 2019 and has since been renamed as Deem. It is expected to be pegged to the US dollar on the condition that the social media giant can shake off the hype and controversy over its original idea, which was about two years old.

Facebook first announced its digital currency plan in June 2019, but has faced strong opposition from governments and consumer groups around the world who are concerned about what will happen if Facebook takes control of its potential to become the world's largest currency.

On a planet of 7.9 billion people, Facebook has nearly 2.8 billion active users.

Facebook's plan for 2019 was to launch a blockchain-based currency in early 2020, which did not seem to happen after the tech company's partner organizations (like PayPal and eBay) began to join forces. Pulled back after the wave of negative news.

This time, Facebook appears to have treaded more cautiously: Deem, the Swiss nonprofit responsible for daily business development, is planning to start a pilot program to peg a single stable currency to the US dollar. 2021.

The experimental model is small and mainly focuses on transactions between individual consumers. Users can also purchase merchandise and purchase merchandise. However, since there is no fixed release date, the time can change.

The aim of Libra is to peg a global currency to a number of national currencies such as the US dollar and the euro. However, after speaking forcefully against the global regulators, the organization responsible for the project lost its main support.

The organization relaxed its plan and chose several stable currencies backed by several government-backed currencies and a multi-currency currency.

Central bank officials and politicians fear that the currency will endanger the stability of the currency and lead to money laundering activity, and Facebook's involvement also means that people are concerned about how to protect the privacy of individuals and users.

One of the biggest concerns is that Diem could pose a threat to the dominance of the US dollar, and two months after Facebook announced the scale, the former governor of the Bank of England proposed a new digital currency that could be based on the global shopping cart. Lower the US dollar. exchange rate. The status of the US dollar as the global reserve currency.

In the past year and a half, Diem technology has undergone massive changes, from traditional blockchains to highly complex blockchains.

Deem is currently negotiating with the Swiss Financial Supervisory Authority to issue a payment authorization. This will put the organization on the right track to start its digital currency project.

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