Diem, supported by Facebook, is almost ready to debut, with a presale discount for early investors announced on the project’s presale webpage. The digital currency’s early rebranding from Libra to Diem after the regulatory and legislative reaction was one of many stumbling blocks in the process of its debut.
Diem’s presale ushers in a phase of its journey that many thought would never arrive. The Facebook-backed digital currency has evolved from its early days as Libra is held by a group of 26 financial companies and has managed to separate itself from the original Facebook Libra digital currency.
The corporation indicated that its goals for the new Diem digital currency were for a thorough rebranding that would no longer identify it with Libra and the regulatory controversy that followed it in 2020.
The rebranding and new ownership by a conglomeration of 26 financial companies have taken away part of the criticism of the new stablecoin, which was not well received by US lawmakers. This is partly due to Facebook’s withdrawal from the project, partly because of Diem’s statement that the digital currency will be phased out as soon as a Federal Reserve central bank digital currency is released. Diem will remove the stablecoin as more quickly as the “fed coin” is created, rather than becoming a direct rival due to its cozying up to authorities.
Much of the debate around the ‘privacy-focused currency, which as digital money would be expected to maintain strict privacy boundaries, stemmed from Facebook’s poor track record with privacy.
Diem’s Chief Economist, Christian Catalini, spoke about the need for privacy in the new Diem stablecoin:
The ongoing presale will set the tone for Diem’s future. While the digital currency hasn’t had much backing from regulatory authorities or even the crypto community, there’s no doubting Facebook’s massive power over the masses.