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How Does Facebook’s New Digital Currency, Diem, Relate to the Birth Sign of the Libra?
It may be a strange story, but how does Facebook’s new digital currency, diem, relate to the birth sign of the libra? The new digital currency was created by the Diem Association back in 2009, and it’s now backed by low-volatility assets like bank deposits and government securities. Although the currency was predicted to be in use in December 2020, it’s unclear when the pilot project will take place.
Diem Association was founded by Facebook in 2009
Despite its atypical name, the Diem Association is a cryptocurrency ecosystem composed of a blockchain, Diem coin, reserve, and associated software. The entire system is controlled by the Diem Association. Facebook began investigating blockchain technology in 2017, and is one of the most active supporters of this new currency. Facebook executive Morgan Beller investigated the potential of blockchain technology for several months, and later joined forces with David Marcus to launch the first Facebook-backed blockchain project. In June 2019, Facebook unveiled the Libra global currency, a cryptocurrency that can empower billions of users.
The Facebook cryptocurrency project was initially ambitious, backed by several global currencies, and designed to reduce transaction costs in parallel with global money flows. However, regulatory pressures led the project to be scaled back and its ambition was limited to acting as a payment processor. As such, the Diem project has been doomed to failure. The Diem Association has been criticized for failing to meet regulatory requirements, and critics have questioned the safety of its cryptocurrency.
It was adopted by Facebook in December 2020
The announcement that Facebook is adopting the crypto-based currency Diem reflects the company’s commitment to decentralization. The new project’s senior executives are demonstrating organizational independence, increasing the chance of regulatory approval. In addition, the project has been designed to complement different companies’ products and services. In December 2020, the social network will officially adopt the currency. In the meantime, the Facebook team has begun exploring new uses for the coin.
The Diem project began in 2019 with the aim of creating a stablecoin that would be linked to less volatile assets. But regulators and politicians questioned whether Diem was too large to fail. After a research paper from Princeton Professor David Buckley and his colleagues, Facebook’s Diem project was criticized. In response, the former head of the crypto division at Facebook, David Marcus, stated that the coin idea needed a promoter.
It was backed by low-volatility assets like bank deposits and government securities
The project is based on the idea that the new digital currency, which was initially dubbed Libra but will be renamed to Diem in December 2020, could be a viable business model. This article discusses the project from the perspective of financial theory, examining the business model and revenue streams that will be generated through Diem.
Although FB is facing increasing criticism for abusing its market power, the plan was flawed from the beginning. The initial goal of the project was to create a stable and low-volatility asset backed by low-volatility assets, but it turned out to be far more ambitious than it was originally intended. The plan ended up being a failure, as the new cryptocurrency, called Libra, was backed by bank deposits and government securities, and the idea is unlikely to catch on.
After all, there are many other cryptocurrency based on fiat currency and it would be impossible for a company to manufacture its own digital currency, and no one would want to invest their money in that. This project has a low-volatility design. It uses no mining, and instead creates demand by trading for fiat currencies. This makes it a stable coin, which is essential for avoiding the risks of high volatility.
It was expected to launch a pilot in 2021
The CW may skip the pilot season this year and go straight to four projects instead: Wonder Girl, Naomi and the prequel to The 100. While the 100 may not have gone away, the network’s Entertainment Content division is still focusing on its roster of 2019 pilots. The CW has already picked up Superman & Lois, Walker and Kung Fu. It is expected to order more drama pilots in the near future, as well as some comedy shows.
The pilot season for the 2021 season was blown off by a coronavirus pandemic, which wiped out almost every pilot heading into production. The virus led many nets to rely on extra backup scripts to make final decisions about a series. But over the summer, the network changed its approach to development, committing to more traditional pilots, lower-cost presentations and writers rooms. Similarly, ABC has intensified plans to move the pilot season to an off-cycle season.
