June 18, 2019 was the day that Facebook formalized Libra , its cryptocurrency with which the company intended to revolutionize payments around the world, which was intended to be accompanied by a virtual wallet baptized at that time with the name of Calibra , the which would be available in both Messenger and WhatsApp.
Moreover, at that time it was expected that its launch would possibly take place in the first half of 2020, something that finally did not happen.
What is Libra and what really happened to it?
Libra was the name chosen by the popular social network for the launch of a new cryptocurrency that would revolutionize the market . Based on blockchain, in the same way that it happens with Bitcoin or Ethereum, it would have equally secure and transparent transactions.
However, unlike other cryptocurrencies, Facebook confirmed at the time that Libra would be destined to be much less volatile , in order to inspire confidence in a large part of the population, without the risk that it could lose all its value overnight. the morning.
Thus, to guarantee this stability, in those months we learned that Facebook’s cryptocurrency was backed by a pool of reliable currencies (including partners such as Visa, Mastercard or Paypal). And Calibra would be, so to speak, the virtual wallet that would be used to store our cryptocurrencies.
However, the supposed arrival of this new currency began to worry most governments, who feared that their monetary sovereignty would be questioned, without hiding their concern about its launch. Moreover, countries like Russia even announced that they would not allow its legalization, while the United States followed a similar path.
Due to the great avalanche of criticism, many partners, including Paypal, decided to back down and abandon Facebook on their adventure with Libra. And soon after, the company decided to change its name to Diem .
What will really happen to Diem?
In general terms, Diem intends to seek to extend the revolution in online payments originally started many years ago by Paypal, since it would allow almost free payments, deposits and transfers .
As we can see, it is evident that one of the main objectives of the company would be to provide its more than 1,700 million users with access to a safe alternative, especially for those who do not currently have a bank account.
And it would also consist of a cryptocurrency , developed by the Diem Association (a non-profit organization), whose main purpose would be to launch a stablecoin pegged to the US dollar sometime this year (2021).
Apparently, the operation of Diem would be based on the chain of blocks (blockchain), as with other cryptocurrencies, but unlike Bitcoin or Ethereum, it would be designed as a stable currency . In other words, its value would be stabilized by a portfolio of currencies that are the main reserve units in the world, such as the US dollar.
After hearing this news, regulators have again begun to show their concern , especially in relation to the monetary stability itself and the privacy of users.
However, for the time being at least, the pilot would focus on transactions between individual consumers, and it will initially be small in scale.
In addition, although previously Libra had the support of Mastercard, Paypal, Visa, Stripe, Vodafone or eBay, on this occasion Diem would already have not only the support itself of Facebook, but also with the collaboration of other relevant and powerful companies, as is the case with Uber, Spotify or Shopify .
