The growth of online economic activity leads people to aspire to smoother payment methods and flexible financial transactions. The diffusion of smart devices and internet penetration levels in contemporary society are paving the way for a global digitalization of the economy through cryptocurrencies.
Facebook's Crypto Venture
The impact of social media like Facebook can affect the economic field, thanks to a user base of 2.6 billion across the world. It shouldn't shock anyone that the world's largest social media decided to debut with a new cryptocurrency, Diem, launched in 2021.
Although internet-based financial transactions are widely accessible to millions of users, about 1.7 billion adult mobile owners live without access to traditional banking services. Nowadays, people with limited financial resources are charged additional fees for using financial services, such as ATM charges, wire costs, and more. That's where Diem takes action: Facebook's new cryptocurrency offers the chance to use blockchain to solve the accessibility problem. Blockchain allows users to process financial movements without the control of a local bank or other financial institutions, which makes cryptocurrencies a free way to online financial transactions for online purchases, payments, donations, and gaming services. Furthermore, Diem might help online casino players overcome transaction issues, as you can see at https://www.drapuestas.com/blog/diem-la-nueva-criptomoneda-de-meta, a recent article discussing the features and use of Diem for online real-money gaming.
What Makes Diem Different Than Other Cryptocurrencies?
The advent of Diem (formerly Libra) came with the promise of solving several financial issues, starting from accessibility. The objective is to combine blockchain technology with regulatory frameworks and all-around compliance. Thus, Diem can help with specific compliance requirements by improving the efficiency of other cryptocurrencies. We've collected a list of the main actions of Diem:
- Diem helps prevent illegal activities, including money laundering.
- It can use crypto projects to help against financing for terrorism.
- It provides a strong base for trust while sanctioning compliance.
- The Diem coin can offer users the advantage of security.
- It offers a new chance to people with limited accessibility to financial services.
- It provides an open, global payment network at a cost-effective level.
- The transaction speed is superior to other cryptocurrencies.
- Diem supports commercial and trade activities.
- It offers high-quality interoperability under governance practices and compliance standards.
Components of Diem
The financial build of Diem focuses on empowering billions of adult users cut off from the actual financial fields. Facebook's Diem project encompasses three milestone aspects that contribute to creating an inclusive financial system for the future. Here, you can see the three components of Diem:
Diem entails a blockchain structure that ensures reliable scalability and security levels. This condition is necessary to build a technology-driven and cost-effective payment system.
2) Governance
The Libra Association and derived networks support governance and compliance while focusing on developing the payment system's infrastructure.
3) Libra Reserve
Libra was born as an integrated entity of the Libra Reserve, which includes assets of cash or cash equivalents within short-term government securities.
Conclusion
Facebook's new cryptocurrency aims to offer the world an interoperable and reliable payment method that can secure the user's financial assets through simple and intuitive interfaces. On top of these objectives, Diem focuses on providing users with cost-effective and easy-to-go access to the online financial panorama.
