Among all of the cryptocurrencies that have yet to make their debut, Diem is possibly one of the most awaited releases. This cryptocurrency was originally planned for release in 2020 but has since been halted for further development and certain issues surrounding its initial plan.
Ever since the news about Diem’s launch was revealed, fintech experts and traders alike have wanted to know more about Diem, how it came to be and what it offers to the world of crypto. To learn more about the Diem cryptocurrency and whether you should invest when it comes out, continue reading the sections below:
An overview of Diem’s history
Facebook first announced their plans to create a new digital currency by releasing blueprints back in June 2019. At the time, the digital currency was named Libra and set to launch by January of 2020. However, the news was not taken well by financial analysts and politicians around the world.
There were issues surrounding Libra’s release, which included risks for money laundering and rifts between private companies and even countries. With all of the buzz surrounding Libra before it was even released, the cryptocurrency went through a rebranding where a new whitepaper was released. It was also renamed Diem.
Diem was soon let go from Facebook’s responsibility and became a project of the non-profit Diem Association in Switzerland. They used the platform to nurture the Diem project and work with other big names in the industry. Facebook is also a part of this organization along with other big names like Spotify, Lyft, Coinbase and Uber.
Stuart Levey, the CEO of the Diem Association talked about the goals of the cryptocurrency in the market, ‘The Diem project will provide a simple platform for fintech innovation to thrive and enable consumers and businesses to conduct instantaneous, low-cost, highly-secure transactions,’
Diem is now scheduled to officially launch towards the end of 2021. In May of 2021, they also announced that the cryptocurrency would be relocating from Switzerland to the United States as it is planned to be launched as a stablecoin. As of now, there are no other announcements regarding the cryptocurrency.
Why you should use Diem
It can be hard for some investors to fully trust the Diem cryptocurrency because no one knows how it works yet. However, basic information is known thanks to certain details along with the whitepaper released back in 2020. Read on to learn more about Diem and why you should consider buying it upon its release date.
Diem is a stablecoin
Since Diem was announced as a U.S. stablecoin back in May, it opens a world of opportunities for new and seasoned traders. This means that the cryptocurrency will involve fiat-related businesses and is backed by certain assets, making its price more stable, hence the name.
The Diem Association has also said that Silvergate Bank in the United States will be the official issuer of the Diem stablecoin. Alan Lane, the CEO of Silvergate, published a press release on their partnership, saying, ‘We believe in the future of U.S. dollar-backed stablecoins and their potential to transform existing payment systems’.
Diem is a multicurrency coin
Diem plans to release two types of coins when the project is complete. The first is a stablecoin as previously mentioned and the second is a multicurrency coin. This allows investors to have a more accessible trading experience with Diem and convert it to various currencies with ease.
One of the reasons why investors are keen to know more about Diem is also because it’s backed by multiple assets. These include cash, government securities and cash equivalents.
It potentially has lower prices and trading fees
Since Diem is not yet released, no one knows what its exact value is. However, comparing it to other stablecoins in the market such as Tether and USD Coin could give an insightful look at its potential price.
As of now, there are no updates as to which platforms Diem will be available in. However, considering that Coinbase is a member of the Diem Association, there is a good chance that the platform will be offering it as well.
Diem is built on blockchain technology
Even though Diem is a stablecoin and is backed by fiat-driven assets and companies, it also holds all of the features that crypto traders are looking for. It is built on blockchain technology that encodes and validates information to a public ledger. This helps prevent fraud and offers privacy to all cryptocurrency users.
Another advantage that comes with being a stablecoin is that Diem is expected to have excellent security when it comes to transactions. Part of this will be reliant on the platforms that the coin is being offered in but users can expect a safe and easy trading experience with Diem.
Diem has many investors and a massive user base
Last but not least, Diem already has an advantage because it’s taken years in the making. Since the cryptocurrency was originally planned by Facebook, there were millions of users on the platform who were looking forward to its release.
On the other hand, the Diem Association also has plenty of large-scale investors and members such as Lyft, Spotify, Shopify and Uber. This is a huge advantage because the cryptocurrency will be able to get off on a good start upon release in late 2021.
There is also an excellent chance that Diem will get more investors and potential traders once the cryptocurrency and initial coin offering has been released.
Look forward to Diem’s release at BTC Post!
New cryptocurrencies typically garner a lot of attention and many traders are eagerly awaiting the release of Diem as it holds a lot of potential. Now that you know everything about the Diem cryptocurrency so far, you can anticipate its release this 2021 with enough knowledge!
Keep yourself updated with the latest news about Diem here at BTC Post. Read more for lots of informative blogs and news articles on cryptocurrency.
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