Not long ago, the <a href="https://www.investing.com/news/cryptocurrency-news/one-currency-to-rule-them-all-facebooks-diem-has-global-ambitions-2639595" target="_blank" rel="nofollow noopener">rumor </a>spread that the world's largest social media network was working on ideas for a worldwide digital currency. Facebook chose to plan and introduce a "new" global digital money later in 2021, after renaming it as Diem.
<h2>Facebook Introduces New Digital Money - Diem</h2>
Facebook Diem is a permissionless payment system based on blockchain technology that will be deployed shortly. Diem will be the system's stablecoin, and it will run on its blockchain network.

Although Facebook <a href="https://www.cryptoknowmics.com/news/facebook-invests-50-million-to-develop-its-virtual-metaverse-responsibly/">suggested</a> the idea, Diem Association will monitor its whole functioning for openness. The Diem Association is a group of businesses from many industries, including technology, fintech, telecommunications, venture capital, and charities.

Libra, the first coin, was not decentralized, and neither is Diem. While the ultimate objective is to be permissionless, Diem will initially function on a permissioned blockchain.

Because the team has yet to build a solid system that can manage permissionless transactions for its billions of potential users, only members of the Diem Association can now execute transactions on it. 

If the initiative receives regulatory clearance in the United States, Diem will operate as a full-fledged central bank based on blockchain technology.
<h2>Features of Facebook's New Global Digital Money</h2>
The goal of Facebook's new global digital currency is to revolutionize the worldwide payment system. 

As a result, the Facebook Diem project has three distinct components that operate in tandem to build an inclusive and secure financial system. They are as follows:
<ol>
 	<li> A Strong Blockchain Technology Basis</li>
</ol>
Diem's source code is publicly available on Github and may be viewed by anybody. The source code, written in Rust, is scalable, allowing the infrastructure to support several projects. 

Diem is also working on a new programming language called Move that will be used to construct smart contracts and execute specific transactions.
<ol start="2">
 	<li> Digital Wallet Novi</li>
</ol>
The program will be compatible with WhatsApp, Messenger, Instagram, and most likely other sites. Its simplicity of use is currently astounding, but it will only improve over time.
<ol start="3">
 	<li> About Diem</li>
</ol>
Diem is a key <a href="https://www.cryptoknowmics.com/news/biden-administration-still-skeptical-about-facebooks-diem/">element</a> of Facebook's proposed global digital currency initiative. According to the development team, the currency will not be mined the same way that Bitcoin and other cryptocurrencies are. 

Within the first five years of its debut, Diem intends to fully convert to a permissionless proof-of-stake system.
<h2>Diem's Design Is Guided By Values</h2>
Some precepts provide guiding principles for the function and design of Facebook Diem, just as they do for other respectable cryptocurrencies. 

As all hands are for its launch later in 2021, here are some important values driving its distinct design:
<ul>
 	<li style="font-weight: 400">People should be able to regulate their lawful labor and the results of their effort.</li>
 	<li style="font-weight: 400">Financial services should be available to more individuals.</li>
 	<li style="font-weight: 400">Global payment networks should be more accessible, less expensive, and faster. All of this leads to increased economic prospects and more efficient global trade.</li>
 	<li style="font-weight: 400">People will gradually but steadily gain faith in a variety of dispersed systems of governance.</li>
 	<li style="font-weight: 400">People and institutions are accountable for encouraging the expansion of financial inclusion, in addition to supporting ethical agents and constantly preserving payment integrity.</li>
 	<li style="font-weight: 400">The governance and design approaches should be followed by an open and much wider payment network with unrivaled levels of interoperability and strong compliance requirements.</li>
</ul>
<h2>What Does Facebook Intend To Do With It?</h2>
There are several options that a cryptocurrency supported by a business with the power and reach of Facebook may provide to consumers all around the world. 

Furthermore, the unique potential that it provides makes Facebook Diem a fantastic creation in this crypto age. Diem will be used in the following ways by Facebook soon:

Remittance 

The initiative guarantees quick transaction speeds and lower fees than financial middlemen.

E-Commerce

The Diem Association has billions of members, while Facebook has at least three billion users worldwide. Every member firm that provides B2C services will put the Diem system in place on its platform. Shopify will make it easy for e-commerce site owners to integrate the currency.

Payments Across Borders

Diem can help to reduce the cost of moving money across borders, which is already expensive at 6.5%. Because Facebook Diem is a cryptocurrency with sufficient payment channels in place, it is nearly digital.

Governance 

Facebook Diem is a permissioned, blockchain-based payment system with its private coin. Facebook Connect, the latest generation of the Facebook network, was released in May 2008. 

It enables users to link their Facebook friends, identity, and privacy to websites on the internet. Because Facebook does not have complete control of Diem, it is not feasible to misrepresent Diem's use in the public interest.
<h2>Facebook's Libra Is Inherently Risky</h2>
According to reports, Facebook's Libra is backed 1:1 by existing currencies such as the US dollar, euro, yen, and so on. It begs the issue of how a secondary currency that relies on the main currency for value will be able to replace it. Having said that, it may alter user data.

The engagement of big tech in digital currencies has certain potential benefits, even if it may decrease competition and cause data privacy problems. 

According to a <a href="https://www.bis.org/press/p190623.htm" target="_blank" rel="nofollow noopener">BIS consultant</a>, the goal should be to adapt to big tech's entry into financial services to profit from the advantages while reducing the hazards.
“Public policy needs to build on a more comprehensive approach that draws on financial regulation, competition policy, and data privacy regulation.”
Anyone can create a cryptocurrency payment system from the comfort of their own home. The key aspect, however, is that credible groups with verified track histories support Facebook's Diem.

Diem, Facebook's Digital Money, Aims to be the World's Most Powerful Currency

The world's largest social media network, Facebook chose to plan and introduce a "new" global digital money later in 2021, after renaming it as Diem.

Kavya Barua is a voracious learner who is fascinated by crypto and Fintech advancements. Graduated from Janki Devi Memorial College's B.A (Hons) English program at the University of Delhi. She aspires to be a successful professional, having a keen interest in learning and achieving results.

Diem, Facebook's Digital Money, Aims to be the World's Most Powerful Currency

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