Last year’s backlash against Facebook Inc .’s planned digital currency Libra would have been most chief executive officers’ worst nightmare. The more Mark Zuckerberg tried to reassure politicians by talking up financial inclusion and innovation, the more he came across like a tobacco boss denying that cigarettes are addictive. Converting a dollar or euro into a digital Diem would be a one-to-one transaction, with little chance of wild Bitcoin-level volatility or an overnight disruption of fiat currencies. As for money-laundering risks, Zuckerberg will no doubt sign up to “know your customer" rules, but how effective will Facebook be in tackling bad actors? Zuckerberg will no doubt argue that Diem is an association, independent of his empire.

Source: Mint December 24, 2020 15:56 UTC