Hello and welcome to yet another red hot show by Kalkine TV – namely, The Hot Performers. I’m
James Preston and in this edition we take a look Facebook’s Diem and whether it will
be a great opportunity for investors? Diem is a blockchain-backed digital currency being developed
by Facebook through Diem Association. Earlier known as Libra, Facebook rebranded Diem in 2020.
Tech giant, Facebook intends to launch Diem by the end of this year. Sounds interesting
right? Well, let’s find out if Diem is a Hot Performer worth investors’ attention or not.
American multinational technology company Facebook has been in the thick of things of late.
The recent outage of its social media applications on Monday evening didn’t
exactly work well for it’s ambitions surrounding Diem. While Facebook termed it a configuration
issue due to the change in the backbone routers, which manages the network traffic between the
company’s data centres, experts have raised issues related to security aspect.
BUT with all that said, what exactly is DIEM?
Diem is a Facebook-backed ambitious digital currency project, which aims to revolutionize
the current payment system. [g] Diem is a blockchain-backed digital currency being
developed by Facebook through a Diem Association. [e] Facebook aims to launch Diem by years end.
With the growing impetus on the launch of CBDC that is -- central bank digital currencies,
Diem could well turn out to be a somewhat surrprise leader of the pack. Facebook’s
platform has in many ways led to it becoming one of the most powerful in the world – housing news,
events and the ability networking both friends and professional relationships, so with that in mind
it’s fair to say that the new goal is to become the worlds most prominent digital bank. Recently,
it announced the launch of Novi Wallet. Novi Wallet, which is a Diem-backed payment system,
enables users to move money domestically and internationally in a quick and affordable way.
Let’s now take a look at why Diem is already facing scrutiny before it’s even launched.
Diem was previously known as Libra until a Facebook led rebrand in 2020.
Many believe that given Facebook’s wide reach, the currency could threaten financial stability
and potentially enable money laundering. Facebook’s involvement also meant that
there were concerns over how it would protect users’ privacy as well. These
concerns haven’t exactly been addressed to date. But, is Diem still a good investment opportunity?
Investors do have a fair chance to invest in a dynamic digital payment system that could well
rule the system going forward. Assuming it doesn’t run into other regulatory troubles,
the Facebook-backed Diem could well turn out to be a real gem in the crypto space. All in all,
the stable coin aims to tackle the issues related to digital payments infrastructure along
with issues of high transaction fees and slow cross-border payments amongst other issues. [g] As
Facebook leverages the current system, Facebook’s Diem and its scalability will provide investors a
unique solution to offer easy solutions to complex problems. [e] As the Diem Association is made up
of 26 companies, Facebook can expand the potential of the Diem beyond its own platform. Facebook’s
Diem could well be a game changer in the digital payment industry, and it would be hoping that
regulators and the internal issues will be in order by the time of the launch. [w] Facebook
claims the Diem coin can help fix their payment system, but experts are not yet convinced. [e]
ALRIGHT WELL THAT’S ALL for today’s Hot Performers. I Hope enjoyed our analysis of
Facebook’s Diem, and we will be sure to keep you across any further developments from the
budding currency. Keep watching Kalkine TV for all such stock related insights
and market action. This is James signing off for now.