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The latest status of Facebook digital currency; What will happen to Deim in the crowded stable coin market?


Facebook introduced its digital currency in 2019, but more than two years later, the project is not yet complete and it’s apparently set to compete with popular currencies like Tetra in the crowded stable coin market.

to the Report While the digital currency space was busy this week with the approval of Bitcoin exchange traded funds (ETFs) and other news related to companies in the field, the Facebook digital currency project lost two other developers.

Riyaz Faizullabhoy and Nassim Eddequiouaq, both of whom left Anchorage 2 years ago to work on Facebook’s wallet, have joined the digital currency division of Andersen Horowitz Investment Corporation. Joined. Interestingly, Anderson Horowitz is one of the founding members of the former Diem Association, or Libera, which was co-founded with Facebook.

Anderson Horowitz is likely to bring them home to ensure the success of Novi, Facebook’s digital currency wallet. But we can not ignore the damage that this news and the outflow of talents like these two on the digital currency doomed to failure and half-baked Facebook.

It has been a long time since Libra was first introduced by Facebook in June 2019. Originally referred to as the “Global Currency without Borders”, the digital currency was backed by the Libra Reserve, “a collection of volatile assets such as bank deposits, government securities and reputable central bank currencies” worldwide.

The Libra Society lost eight key members in its first four months, including powerful members such as PayPal, eBay, Stripe and MasterCard. Libra changed its name to Diem, and Calibra, Facebook’s digital currency wallet, changed its name to Novi. According to Jeff Benson, the digital currency has lost its ambition as a simple, dollar-dependent stable coin. The digital currency market currently has a large number of these stable coins offered by large companies such as Circle, Paxos and Bainance.

Now, in the fourth quarter of 2021, the question is whether anyone expects Facebook to launch a digital currency.

Facebook hates the media calling Diem the digital currency of Facebook, Zuck Bucks, Mark Zuckerberg, or Facebook Quinn, because Dim is not just about Facebook, but is supported by a range of companies. The Diem Association is based in Switzerland and this digital currency is set to be gradually decentralized. However, Facebook has introduced this project and one of the managers of Facebook is its main face, so the success or failure of this project is tied to the name of Facebook.

Interestingly, Facebook has so far been able to draw the attention of US officials to the issue of national digital currency, and therefore deserves credit. Facebook co-founder Mark Zuckerberg used the digital yuan as a tool to deceive congressmen when he testified in Congress in October 2019 in defense of the Libera project. He threatened that if the United States intervened in the Libra project, the United States might lose out on digital payments from China. But Zuckerberg is currently working on a new project in the field of Metaverse.

This bears similarities to the reaction of older digital currency traders to the approval of bitcoin futures ETFs. While many were optimistic about the news in the hope of a price increase, others did not fully understand the concept of bitcoin future ETFs. Their main question was, if you want to invest in Bitcoin, why not buy it directly?

Also read: Does the supply of Bitcoin ETFs affect the price of this digital currency?

The same is true of Facebook’s digital currency. If people want a stable dollar coin with which to maintain their capital and buy and sell digital currency, there are many reliable options in this area. What attracts traders to a stable dollar coin that bears only the name of Facebook? Facebook seems to know this too. In a report released in August, Frank Chaparro said Novi was in talks with Circle and Paxos to work with them instead of with Dim.

Facebook, on the other hand, has an undeniable internal advantage of 2.9 billion users. Whether Facebook StableQueen is accepted or not, a significant number of people around the world will try it. Until last year, there were 30 million addresses containing bitcoins. If only 2% of Facebook users buy Dim through their new wallet, this digital currency will have 58 million users.

Facebook is now entering a very busy market with boring products. Facebook CEO David Marcus said in August that the new wallet was ready to go.

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