Facebook diem set to launch pilot

facebook diem set to launch pilot

With a small pilot planned in 2021, the Swiss nonprofit oversees the coin’s development.

Ran Goldi, CEO ofFirst Digital Assets Groupwhich is in charge of merchant infrastructure for Diem, says that the coin’s technology “changed dramatically over the past year and a half from a naive blockchain to a very sophisticated blockchain that you can see is trying to answer some of the questions that regulators had.”

Formerly libra, the coin was essentially not supported by financial institutions because of its disruptiveness. Facebook’s involvement caused concerns over data privacy and decentralized currency could pose risks regarding money laundering and economic instability.


The social media platform has nearly three billion users globally. Politicians and central banks are feeling unease about the prospect of launching a stablecoin that such a large number of people could use. The worry is that the currency could threaten monetary stability and potentially enable money laundering.

Not to mention, Facebook’s involvement also caused some concerns as the platform has been criticized for not adequately protecting user privacy.
Michael Gronager, CEO of blockchain analysis firm Chainalysis, said, “I think it will get past the gates this year. It would be a missed opportunity if not. At the same time, it’s one of the multiple initiatives happening, and it’s similar to Tesla buying $1.5 billion in crypto.


Despite limitations from libra, Diem will still run on Facebook and pursue its aim of accessible money that can be transferred all around the world for affordable fees.

Digital wallet rebrand

Following Diem’s renaming, Facebook has also rebranded its planned digital wallet from Calibra toNovi. With Novi, users will be able to send money to others through Facebook Messenger or WhatsApp. Novi is Latin for ‘novus’ which means new and ‘via’ which means ‘way’.

Moreover,CNBCreports that a key advantage of Diem is that it is backed by Facebook which brings in the network effect.
“What you get with an institution like Facebook backing a stablecoin is a much better distribution,” Michael Gronager, CEO ofChainalysissaid.

Facebook diem set to launch pilot-2

CEO Stuart Levey, who was formerly HSBC’s chief legal officer.

Diem is now in talks with Swiss financial regulators to secure a payment license, a crucial step that would place the organization further along the path toward getting its digital currency project off the ground.

“A big step of our dialogue with regulators has been a phased approach to launch,” Christian Catalini, Diem’s chief economist, told CNBC’s Joumanna Bercetche last month.

“We are going to be phasing in different functionalities and use cases, applications in different areas,” he said, adding that members — both large and small — would have to undergo rigorous anti-money laundering checks.

“Once we get the green light, we will start experimenting with a small number of users and a small number of players,” Catalini said.

Facebook diem set to launch pilots

With the way social media has disrupted communication, it would be no surprise if one of these platforms would integrate with the disruptive technology of cryptocurrency. In already revolutionizing communication, Facebook also plans to transform the finance space with its global digital currency. However, according toCNBC, the social media giant’s goals were halted due to opposition from international regulations.

Social media has revolutionized communication, essentially, transforming the way we live.
Created in 1997, the earliest social media website isSix Degrees. It had basic features we know of today such as profile creation and adding friends.SmallBizTrendsshows that modern social media truly started to emerge after the invention of blogging.

Following its popularity in the late 90s, websites like MySpace and LinkedIn started to emerge in the early 2000s.

Facebook diem set to launch pilota

Diem, the Facebook-backed digital currency project, may yet launch its first stablecoin in 2021 as a small-scale pilot, based on reports from an anonymous source. The source also said that the first Diem pilot will focus on transactions between the individual consumers.

The source was cited in a CNBC report published on April 20 alleging that the Switzerland-based nonprofit The Diem Association still intends to launch its pilot for a United States dollar-backed stablecoin later in the year.

In November 2021, the association had already unveiled its plans for a constrained launch of a US-dollar stablecoin in January.

A New Realm of Risks Await.

Politico reported:

During the chaotic first months of the pandemic, countries like Taiwan and South Korean were held up as models for rolling outaggressive trackingto identify everyone who came into contact with infected people to containcoronavirusspread and prevent health systems from being overwhelmed.

Thetest-trace-isolate protocol worked. But a year later, many human rights activists and lawyers worry the high-tech intervention set a bad precedent. Governments rushed to gather and examine vast data stores without proper consultation, exposing sensitive, private information to the public in the process.

It’s really drifted off the radar in a way that’s quite striking,” Michael Casey, chief content officer of the cryptocurrency publication CoinDesk and a former financial journalist, told CNBC.

Diem was met with intense scrutiny when it was first introduced. Given Facebook’s wide reach — it had 2.8 billion monthly active users in the fourth quarter of 2020 — central bankers and politicians feared the currency could threaten monetary stability and potentially enable money laundering. Facebook’s involvement also meant that there were concerns over how it would protect users’ privacy.

“It was such a stunning challenge to the international order, in that the backlash was just really powerful,” Casey said.

One big concern, according to Casey, was that diem posed a threat to the dominance of the U.S.

dollar.

The Facebook-backed digital currency Diem is set to launch a pilot scheme later this year, marking what will be a significant milestone in the development of the digital currency.

Formerly known as Libra, the token is expected to be launched as part of a small test project in the coming month, during which time it will only be pegged to the value of the U.S. dollar.

Transactions are expected to be limited to individual-to-individual, with the pilot scheme set to be run initially on only a small scale, according to reports from sources close to the project.

The launch of Diem has been several years in the making, since Facebook first announced plans to explore digital currencies back in 2019.

Such intense regulatory pressure made Libra postpone its plans on the upcoming cryptocurrency launch. Moreover, in October 2019, several Libra partners, including Visa, MasterCard, eBay, Stripe, and Mercado Pago, withdrew from the Association after those regulatory concerns.

To calm unrest and bring the Libra project back to life, Mark Zuckerberg testified before the United States Congress later in October 2019. He announced that Facebook would be ready to leave the Libra Association in order to reassure the Congress of the project’s best intentions.

Thus, after distancing itself from Facebook and ensuring that the project is designed to meet regulatory expectations, the Association decided to change the name to Diem in December 2020.

Big Brother Watches as EU Unveils Plan to Control Use of Artificial Intelligence

RFI reported:

The EU is hoping to catch up with the U.S. and China in a sector that includes fields such as voice recognition, health insurance and law enforcement.

The bloc is trying to learn the lessons after missing out on the internet revolution and failing to produce any major competitors to match the giants of Silicon Valley or their Chinese counterparts.

But there have been competing concerns over the plans, with bothbig techand civil liberties groups arguing that the EU is either overreaching or is not going far enough.

This Has Just Become a Big Week for AI Regulation

MIT Technology Review reported:

Today the EU released its long-awaited set ofAI regulations, an early draft of whichleaked last week.

Originally, it wouldn’t be based on a single real-world currency, but on a mix of multiple currencies.

But Facebook faced strong opposition from many central banks — they feared that Libra would become a quasi-sovereign currency in some countries. Last year, the association announced that it would reduce its ambitions by focusing on single-currency stablecoins.

A stablecoin is a crypto asset with a fixed value that doesn’t fluctuate over time. For instance, the Libra Association wanted to launch the LibraUSD.
One LibraUSD would always be worth one USD.

A few months later, the Libra Association announced some changes once again. The project was rebranded to the Diem Association. Similarly, Facebook’s wallet project was rebranded from Calibra to Novi.

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