Facebook and its new cryptocurrency – Diem.

At the moment when Facebook announced the introduction of its own cryptocurrency, it was hailed as a hit among enthusiasts. Despite this, experts are subjecting the currency to a wave of criticism. Regulatory difficulties make its launch seem to be delayed. According to the German Finance Minister, Diem does not fully comply with the applicable regulations. Despite this, Facebook's cryptocurrency may have a lot of potential and high value in the future. The creators intend it to be a competitor to the payments industry.

Companies vs. Diem.

The Diem Association has left many influential companies. As it may seem, the previous cooperation turned into a rivalry. In addition, smaller companies also look at Diem with unfavorable eyes. For example, the small European company Diem threatened to sue Facebook for using its name. Unfortunately, we do not know whether the threat will find its fulfillment in deeds.

Diem and economic affairs.

Experts are wondering about the possible effects of Diem's impact on the economy. Such a cryptocurrency that is beyond the control of the government and not assigned to a specific geographical area can be a way to cheap transfers and monetary transactions. The dark side of the force may be the possibility of using it for illegal activities,including terrorist activities.

According to the study, such financial integration could be of considerable importance for developing countries, as it could accelerate development and provide citizens with direct access to financial services.

Is it worth investing in Diem?

Diem is already very close to launching. Investors think about how much virtual currency they should buy to start with. They also don't know if Diem will outperform Bitcoin and existing cryptocurrencies. Despite the effective promotion of Diem, it may not be a very attractive cryptocurrency for supporters of decentralized funds.

We do not know what the Diem exchange processwill look like, as well as the supply and time of transactions, hence the potential of cryptocurrency is not entirely certain. We can't answer the question of how much Diem will be profitable to buy. A lot depends on the atmosphere on the day of the premiere. If the price is not excessive, then the possible losses will also not be too great. Investing large amounts would be worth a thorough thought.

Initially, Bitcoin was intended to serve as a medium of exchange in transactions. Despite this, however, it is now more investment-oriented. It is characterized by strong instability, and since there is speculation that Diem will be secured by USD, it may be more stable than other cryptocurrencies.

Unfortunately, we do not know where it will be possible to buy cryptocurrency from Facebook. It can be a special application,a website or current applications: Whatsapp or Instagram.

The birth of Diem.

Facebook announced the new cryptocurrency as early as 2019. At that time, it was proposed that it should be a stable coin secured by a basket of assets, however, in 2020 it was announced that the currency would be supported against the USD. The initial idea of securing Facebook's coin with a basket of currencies was rejected due to regulatory concerns. They concerned Diem's impact on financial stability, data privacy and money laundering.

Initially, the cryptocurrency was supposed to be called Libra,but the name was changed to Diem in order to distance the project from Facebook and its controversial past. The cryptocurrency was supposed to be launched in 2021. There is information that at the same time, central banks are testing their own virtual money,and China is trying out the digital yuan.

The impact of the Diem cryptocurrency on the economic system.

According to one of the media, the use of Diem may cause an increase in its exchange rate in countries engulfed by financial problems. This is explained by the fact that in the face of economic problems, trust in the government and the local currency decreases,and then citizens will want to save money and conduct transactions in Diem. This will only aggravate the situation and deepen the economic collapse.

The emergence of Diem could threaten sovereignty around the world, due to the attractiveness of cryptocurrency. In the event that Diem became the preferred option for transactions, it would affect the interest rates of major cryptocurrencies. These could be lowered by governments.

So far, Facebook's cryptocurrency is not being used, due to the development phase. Global regulators have a lot to say here. Still, Facebook's support means being able to be used worldwide with the company's messengers and apps. It can also mean that transactions can be made as easily as you send messages on social media apps.

It should be added that Diem is not to be burdened with additional fees, and at the same time it will be faster and more accessible, especially for people who do not have bank accounts. Many citizens of developing countries do not have access to bank accounts, so Diem can make it easier for them to carry out transactions.

Diem, and Bitcoin.

Diem is described as a cryptocurrency, however, it does not have as much in common with Bitcoin as one would expect. It is distinguished from the most famous digital coin by its centralization and support by fiat currency. Bitcoin, on the other hand, operates in an equal network and has no support in traditional means of payment.

Author

  • He describes himself as a cryptocurrency investment specialist. He had mined them many years earlier thanks to a self-constructed virtual coin excavator. Privately, he is passionate about hiking in the Karkonosze Mountains. In addition, he is a huge lover of photography, especially taking pictures of the mountains.

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3 Comments

  1. Author

    Cryptocurrencies are still a very innovative solution. They raise a lot of controversy, especially in terms of security. Moreover, they can be used for money laundering. I prefer to wait with investments and the market will become more mature.

  2. Author

    Cryptocurrencies are a completely deregulated market. No one can be blamed for attempted manipulation. People who get into such investments should know what they decide on.

  3. Author

    If Bitcoin’s value continues to decline, that’s fine. Let investors who put money into this digital toy finally see their eyes and see that cryptocurrencies are worth nothing.

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