Facebook’s Mark Zuckerberg is not throwing in the towel despite the difficulties he has faced over the last few months. Last year’s backlash to the Libra project which he was strongly associated with would be enough to stop most CEO’s dead in their tracks, but not Zuckerberg.
Libra, now known as Diem is making moves to gain acceptance with regulators and even governments. With former U.S Treasury associate Stuart Levey in charge, Diem has Facebook and a raft of other major companies within its umbrella. Facebook will make another attempt to leave a footprint in the digital money arena by providing an electronic wallet.
This time, Facebook will not look to create a single global currency. The social media giant will rather craft a synthetic Libra out of a basket of Dollars, Euros and Yens. Diem just like the International Monetary Fund’s-drawing rights will be made up of multiple single currency stablecoins pegged to each one. When the Diem is finally out, converting it into a Euro or Dollar will be a one to one transaction that will leave very little room for volatility.
In a bid to endear itself to regulators, Facebook is even proposing that central banks use the Diem Blockchain to issue digital currencies. Facebook’s new strategy to gain legitimacy suggests that it is trying to make a big move similar to the one made by Alibaba as well as PayPal. The new push to create a significant footprint in the digital money world could see Zuckerberg make a major breakthrough finally.
Despite the challenges and pitfalls that came with the previous attempt, this looks like a revitalized push. Facebook is also looking to be more regulator-friendly after concerns were raised about the company’s dominance in the social media space. Questions were also raised about Facebook’s ability to keep personal data private.
The company has in recent times assembled a decent team of top professionals such as David Marcus who have been working on the company’s cryptocurrency strategy. David Marcus, Facebook’s head of crypto strategy has asked regulators for the benefit of doubt as the company seeks to clear any kinks that will complicate its bid to make moves in the space. It will be interesting to watch the company’s next moves.
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