Just yesterday, following a series of setbacks, the cryptocurrency changed its name to Diem in hopes to separate itself from its association with Facebook’s multiple issues in terms of privacy. Diem is thought to be a one-to-one backed cryptocurrency by the US dollar, something very different from the initial plan to link it to a basket of fiat currencies. In other words, Facebook’s idea of basing it on a multi-currency combination will not apply, and much of it is due to pressure from regulators and banks.
Although speculation says that it will be ready by January, its exact launch date is not yet known, it all depends on when the Diem Association receives regulatory approval from the Swiss Financial Market Supervisory Authority, or FINMA, to operate as a payment service.
Before Libra, now: Diem
This is the last change of the company respect to the project, the announcement doesn’t include any specifics about timing, it suggests the association is positioning itself for an imminent launch. In a statement, Diem Association CEO Stuart Levey more-or-less acknowledged that the new name is an attempt to distance the group from Facebook, and from its earlier controversies.
“The Diem project will provide a simple platform for fintech innovation to thrive and enable consumers and businesses to conduct instantaneous, low-cost, highly secure transactions,” Levey said. “We are committed to doing so in a way that promotes financial inclusion – expanding access to those who need it most, and simultaneously protecting the integrity of the financial system by deterring and detecting illicit conduct. We are excited to introduce Diem – a new name that signals the project’s growing maturity and independence.”
It will also arrive with its own virtual wallet.
With the arrival of Diem, Facebook will debut on Novi -before called Calibra, another evidence of the many changes it has had in the process-, its digital wallet, with which users can manage their assets, send and receive money. Novi wants to send money to be as easy as sending messages in Whatsapp for example and to be done through a stand-alone app. It’s also expected that the wallet doesn’t have hidden charges for receiving, sending, adding or withdrawing money. Additionally, to improve security, all users must verify their profile with their official ID when registering, and the option of customer and technical service 24/7 will be included.
The blockchain-based ZuckBuck scheme is the basis for a future payment gateway. The best use case for this cryptocurrency is cross-border settlement, which would let users to send and store the cryptocurrency internationally, thereby allowing them to become their own banks. “We think that there are technological and governance advantages from having a blockchain. It permits innovation and collaboration in the open source space that we think adds real potential to the overall project, it adds collaboration and innovation and frankly one of the things I love about it is there’ll be use cases developed and innovations that we at the Diem, Libra Association would never have thought of ourselves,” said Diem CEO Stuart Levey.
International remittances and merchant payments are still the two primary use cases that the project is eyeing at the moment.
By Mickael Mosse, Cryptocurrency and Blockchain Advisor.