Part 1 Facebook Libra/Diem looks stalled but Square and Twitter have good momentum. 

https://dailyfintech.com/2021/09/07/part-1-facebook-libra-diem-looks-stalled-but-square-and-twitter-have-good-momentum/
http://dailyfintech.com/wp-content/uploads/2021/08/4-Part-Series-on-Square-Twitter-vs-Facebook-in-Crypto.001.jpeg?#

Our 10 Takeaways from the Facebook Libra announcement in June 2019 still seems about right. Over two years later and all we have is a name change from Libra to Diem. The message is still “it is happening” but patience is being strained.

In the meantime both Square & Twitter are making some big moves. Square & Twitter are very different businesses; Square  is Fintech while Twitter is Media. The only thing they in common is that Jack Dorsey is CEO of both; actually that is a big deal.

First a quick reality check. The market cap of Facebook is $955bn and the combination of Square and Twitter is $152bn. Facebook is a behemoth in social media with a user base of 2.6 billion. If only a fraction of them adopt Diem, it will totally change cross border payments and remittances for the 1.7 billion unbanked (most of whom have mobile Internet access).   

Diem has three components:

  • Blockchain infrastructure layer (open source) capable of serving billions of users. Key to this is the Move programming language, which will get a lot of traction with developers (despite many negative technical reviews compared to Ethereum).
  • Association for the governance of the payment system and Coin; this is currently in Switzerland, but relocation depends on Facebook’s delicate dance with regulators.
  • Coin which is an asset backed stablecoin (initially USD only)

In Part 2 next week we look at Twitter’s moves in Bitcoin.

Some subjects are too complex for our short attention spans, so we do 4 posts one week apart, each one short enough not to lose your attention but in aggregate doing justice to the complexity of the subject. Stay tuned by subscribing.

Part 1

Part 2

Part 3

Part 4

Some may not be published yet.

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https://dailyfintech.com/2021/09/07/part-1-facebook-libra-diem-looks-stalled-but-square-and-twitter-have-good-momentum/
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