Facebook is one of the tech giants in the global industry that were interested to launch digital currency before others even thought about it. Despite all the allegations made by the governments against the tech giant, it has continued moving forward.
Facebook is known for introducing many advancements in the technology sector as well as new applications to boost social interactions.
The tech giant was the only company back in 2019 to pay attention to the nature of digital currencies. It was well aware of the potential of digital currencies and how vast the crypto-industry was growing with the passage of time.
Therefore, Facebook went ahead and proposed an idea of launching a digital currency that would be universal in nature, and would be named “Libra”.
In the proposal filed by Facebook back in 2019, the company had revealed that Libra would be tied to the sovereign currencies’ basket such as the euro and dollar.
However, to Facebook’s shock, it ended up facing a huge backlash from regulatory authorities from all over the world. Before the idea of Libra was presented to the regulatory authorities, it had the support of some of the major financial firms. Some of the major names that backed Facebook in the initial phase were MasterCard and Visa.
As the regulators started rejecting the proposal and showed great opposition to the idea, the major backers of Libra had no option but to back out. They did it because they did not want to damage their relationships with the regulatory and governing authorities from different countries.
Following the above events, Facebook had to put a stop to its plans and intentions of launching a universal digital currency. Then the tech giant changed its design and moved towards the stablecoins sector. This meant that Facebook would launch different digital currencies that would be backed by a particular currency from a certain currency.
Facebook also revealed that it still intended to launch a digital currency that would act as a multi-currency coin.
One of the major examples of such currency in the real world is the euro that can be used all over the European continent without having to convert it from an exchange.
After a couple of years of waiting, Facebook has finally turned to its digital currency project but this time, the name of the project has been changed from “Libra” to “Diem”.
Facebook has announced that it plans to launch Diem to the public by the end of the running year. However, it will not be loaded or equipped with the utilities Facebook had wanted Libra to have in the first place.
The reports suggest that the Switzerland-based non-profit company, The Diem Association is currently in the process of running a pilot on Diem. The company has announced that for now, the Diem will be pegged with the United States dollar.