{"id":40788,"date":"2022-07-30T15:38:25","date_gmt":"2022-07-30T15:38:25","guid":{"rendered":"https:\/\/zeru.com\/blog\/?p=40788"},"modified":"2022-07-30T15:38:25","modified_gmt":"2022-07-30T15:38:25","slug":"how-facebook-diem-is-transforming-the-way-people-make-payments-on-facebook","status":"publish","type":"post","link":"https:\/\/zeru.com\/blog\/how-facebook-diem-is-transforming-the-way-people-make-payments-on-facebook","title":{"rendered":"How Facebook Diem Is Transforming the Way People Make Payments on Facebook"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_43 counter-flat ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a167ad64d6d4\" class=\"cssicon\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><label for=\"ez-toc-cssicon-toggle-item-6a167ad64d6d4\"  class=\"cssiconcheckbox\">1<\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a167ad64d6d4\" ><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zeru.com\/blog\/how-facebook-diem-is-transforming-the-way-people-make-payments-on-facebook\/#How_Facebook_Diem_Is_Transforming_the_Way_People_Make_Payments_on_Facebook\" title=\"How Facebook Diem Is Transforming the Way People Make Payments on Facebook\">How Facebook Diem Is Transforming the Way People Make Payments on Facebook<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zeru.com\/blog\/how-facebook-diem-is-transforming-the-way-people-make-payments-on-facebook\/#Diem_is_a_permissionless_payment_system_based_on_blockchain_technology\" title=\"Diem is a permissionless payment system based on blockchain technology\">Diem is a permissionless payment system based on blockchain technology<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zeru.com\/blog\/how-facebook-diem-is-transforming-the-way-people-make-payments-on-facebook\/#It_has_scalability\" title=\"It has scalability\">It has scalability<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zeru.com\/blog\/how-facebook-diem-is-transforming-the-way-people-make-payments-on-facebook\/#It_is_secure\" title=\"It is secure\">It is secure<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zeru.com\/blog\/how-facebook-diem-is-transforming-the-way-people-make-payments-on-facebook\/#It_has_a_financial_intelligence_unit\" title=\"It has a financial intelligence unit\">It has a financial intelligence unit<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"How_Facebook_Diem_Is_Transforming_the_Way_People_Make_Payments_on_Facebook\"><\/span>How Facebook Diem Is Transforming the Way People Make Payments on Facebook<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/i.imgur.com\/cldjC2h.jpg\" style=\"max-height:328px; width:auto; max-width:44% height:auto; margin:0px 10px;\" alt=\"how facebook diem\" align=\"right\">  <\/p>\n<p>Have you ever wondered how Facebook is making money with its Diem cryptocurrency? This permissionless payment system is built on blockchain technology and has three main features: scalability, security, and a financial intelligence unit. Read on to find out how Diem is transforming the way people make payments on Facebook. Also, learn how the social network is using its own token to help the community. Let&#8217;s start by understanding what Diem is.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Diem_is_a_permissionless_payment_system_based_on_blockchain_technology\"><\/span>Diem is a permissionless payment system based on blockchain technology<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In an age of big data, social networking giant Facebook is launching a permissionless payment system using blockchain technology. This payment system is designed to allow users to send and receive payments without requiring the use of bank accounts. As the first publicly available cryptocurrency, Facebook promises to charge significantly lower transaction fees than the banking industry. However, it is important to note that Facebook must comply with the same national financial regulations as banks, which include anti-money laundering and anti-terrorist financing procedures. Moreover, members of the Diem Association will have to deal with similar issues as financial actors: liability, security, and compliance.<\/p>\n<p>Diem&#8217;s initial motivation was to help emerging countries and the world. It was explained that this technology would decrease the cost of financial services and make transactions between users worldwide more convenient. However, its initial development plan did not mention any economic incentives, other than requiring members to invest ten million dollars to gain access to the Diem reserve fund. Such a plan is not practical in the short term, but in five years, Diem will be able to conduct full proof-of-stake without user approval.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"It_has_scalability\"><\/span>It has scalability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The biggest challenge with Facebook Diem is scalability. Diem requires identity and security verification. These processes can be tedious and costly. Nevertheless, Diem has enormous potential. The platform can reach over 1.7 billion adult users, which is a sizeable portion of the world&#8217;s population. However, it has a number of issues that could hinder its growth. Below, we look at some of those issues.<\/p>\n<p>One problem with scalable currencies is that they are not decentralized and secure. They also offer a lot of room for bad actors to exploit the lag in information. Diem starts off secure and scalable, but it&#8217;s difficult to predict the long-term scalability of the coin. It also offers a stable value. As a result, Facebook has opted for a stable coin rather than a decentralized one.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"It_is_secure\"><\/span>It is secure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One of the biggest questions surrounding Facebook&#8217;s upcoming Diem cryptocurrency is how secure it will be. While the Diem venture has been in development for some time, the Facebook-owned company has been subject to controversy over its past privacy practices. Facebook has even been asked by the House Committee on Financial Services to delay the launch of its cryptocurrency. Additionally, regulators in Switzerland and Singapore have asked Facebook to make clearer disclosures about the privacy of their users.<\/p>\n<p>In response to concerns over security, the company is launching a new wallet called the Navi. The wallet will store user data and transactions, and will also be secure. It is unclear whether or not this wallet will be widely accepted by consumers. It is important to note that the platform will charge a small fee to users, but this fee is much lower than what most banks charge. However, the Diem head says that he doesn&#8217;t expect anyone to use his wallet for security reasons.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"It_has_a_financial_intelligence_unit\"><\/span>It has a financial intelligence unit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Financial Intelligence Unit is the company&#8217;s central body for the analysis of large data sets and targeted information. It oversees and develops processes and policies related to financial crimes and sanctions, and works with cross-functional teams to implement new technology. In addition, the unit coordinates with external counsel and conducts investigations. It is the main contact point for law enforcement agencies. The role also involves managing projects such as data analytics and strategic intelligence analysis.<\/p>\n<p> <iframe allowfullscreen=\"true\" src=\"https:\/\/www.youtube.com\/embed\/Zo0rg6qUcBo\" height=\"278\" width=\"497\" frameborder=\"0\" style=\"margin:0px auto; display: block;\"><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How Facebook Diem Is Transforming the Way People Make Payments on Facebook Have you ever wondered how Facebook is making money with its Diem cryptocurrency? This permissionless payment system is built on blockchain technology and has three main features: scalability, security, and a financial intelligence unit. Read on to find out how Diem is transforming [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":43516,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.7 (Yoast SEO v21.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Facebook Diem Is Transforming the Way People Make Payments on Facebook - Zeru<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zeru.com\/blog\/how-facebook-diem-is-transforming-the-way-people-make-payments-on-facebook\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Facebook Diem Is Transforming the Way People Make Payments on Facebook\" \/>\n<meta property=\"og:description\" content=\"How Facebook Diem Is Transforming the Way People Make Payments on Facebook Have you ever wondered how Facebook is making money with its Diem cryptocurrency? 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