Facebook is taking a crack at cryptocurrencies.

The social media giant and its partner, Diem Association, recently announced that they are preparing to launch a U.S. stablecoin.

Stablecoin is a cryptocurrency tied to conventional assets.

It is totally different from other cryptocurrencies like bitcoin and ethereum, which aren’t tied to any assets and their values are easily swayed even by mere speculations.

Silvergate Bank, which is based in California, will be responsible for issuing the diem currency. The bank will also be the one to manage the diem U.S. dollar reserve.

Dealing with roadblocks

The Diem Association, which serves as the monetary authority of the diem cryptocurrency, has faced major challenges in launching their cryptocoin.

Once called the Libra Association, seven of its original 28 members have bolted from the association because of conflicting interests.

These companies are Paypal, Visa, Mastercard, eBay, Stripe (also a financial service), Mercado Pago (online payments platform) and Book Holdings (online travel company).

But the association, after stripping down its once big plans, was able to spring back from its setbacks.

E-wallet set for rollout

On top of the planned crypto roll-out, a complementing wallet is also scheduled to be unveiled.

It will be called Novi (which was originally named Calibra), and it is expected to be integrated with commerce and game functionalities.

But since Facebook is a major supporter of the Diem association, analysts have expressed their concerns about the social media giant’s role in managing the diem coin.

These concerns certainly have a strong basis given that Facebook has always been entangled in privacy issues.

But the Diem Association assured that Facebook, along with other members, will have equal votes and authority when it comes to decision making.

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Source: https://bitcoinerx.com/blockchain/facebook-prepares-to-launch-the-diem-cryptocurrency/