Introduction
Libra (DIEM) is the centralized cryptocurrency of the social network Facebook. Initially dumbed Libra, it has recently been renamed DIEM to free itself from past polemics entailing Libra’s image.
DIEM is a stablecoin pegged (and backed) by a basket of currencies, cryptocurrencies and financial instruments. DIEM is set to be released in 2021.
Facebook business model relies essentially on big (deep) data. If the products (social network, Instagram, whatsapp) appear to be free for users, in practice it is not. Users are the product on Facebook. They deliver value to the platform through the information and data about themselves that they provide every single time they interact with it (like, read, post...). Facebook monetizes this data for targeted advertising, social and governmental studies and other means.
Data is the new oil.
Behind Facebook, in the backstage, are powerful Artificial Intelligences and Machine Learning algorithms, processing and analyzing people’s behaviors and interests in order to profile them and therefore improve the social network's ability to better target/influence (manipulate?) them.
DIEM
Officially, this is how DIEM is introduced:
“The Diem project will provide a simple platform for fintech innovation to thrive and enable consumers and businesses to conduct instantaneous, low-cost, highly secure transactions,” Stuart Levey, Diem Association CEO, said in a press release today. Dec 1, 2020 (The verge.com)"
But don't be fooled, DIEM is far away from Bitcoin or any other Decentralized cryptocurrencies.
First of all because DIEM is heavily centralized. Centralized because node operators are mainly run by Facebook and their selected partners' corporations. On the blockchain, node operators are those having access to the Ledger: the blockchain database containing all transactions and data about all the users (Financial situation, financial connections between users, regular purchases and patterns, financial behaviors...).
Second, because it is private. The network is fully and only operated and controlled by the consortium. If some of the code is open source (mostly for bug bounties), the network itself will remain proprietary.
Big Brother at your door
Going further in their business model (aggregating data on people), Facebook, with DIEM, should now be able to include an even more precious dataset to its offering than just users’ profiles and behaviors, by combining it with their financial situation, purchasing behaviors and transactions patterns.
“Tell me what you buy, I will tell you who you are”
It should consequently greatly increase Facebook's influential power over its users, as now able to go a (big) step further in their intimacy.
Privacy should be a right, not a privilege.
Thus, keep this article in mind next time you are about to "like" something on Facebook.
Buy Facebook's stock, not DIEM
If DIEM is a stablecoin, it would have no speculative value (stablecoin meaning it shouldn't take any value over time) even though it could be a hedge a against inflation in non-USD and politically unstable countries (As for USD, USDT, USDC, TUSD, BUSD, DAI etc...).
However, releasing DIEM could greatly increase the market (equity) value for the Big data giant and its shareholders.
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