4 Reasons Why Facebook’s Stablecoin “Diem” is Dead on Arrival

Regulations

  • Competition against national currencies. Some finance ministers viewed Libra’s currency (now Diem’s?) as a “threat to monetary sovereignty of European states
  • How would it deal with money laundering, consumer protection, and cryptocurrency taxes
  • Fears of Facebook becoming a “shadow bank”
  • Monopoly — They own social media, big data, technology, and now money?

Centralized

Consensus Mechanism — LibraBFT (Byzantine Fault Tolerance)

Small Group of Validators

Heavy Regulation

Competition

Another Stablecoin?

Global Payment Systems

Poor Reputation

  • Archaic social media — who still uses it?
  • Big Tech — known for being slow, hampered by red-tape, heavy ad presence, poor UX experience
  • Cambridge Analytica scandal — is user data safe with Diem?
  • Privacy Concerns — Will Facebook user personal data be shared without authorization?

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