![\"Testnet](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2020\/12\/testnet-of-facebooks-much-vaunted-stablecoin-only-executes-6-transactions-per-second-768x432.jpg\")
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The Facebook fronted stablecoin, Diem (formerly Libra)\u2019s dismal testnet results undercut the assertion that the digital currency is a threat to global financial stability. This is the conclusion that can be deduced from a Diem blockchain explorer update which shows the network only processes an average of six transactions per second (tps), with the highest reported figure of 24 tps. The testnet for Diem has been live for more than 43 days at the time of writing.<\/strong><\/p>\n The stablecoin performance suggests more still needs to be done before the expected<\/a> launch in 2021, if the coin\u2019s promoters still hope to upstage existing networks. According to a report<\/a>, the Bitcoin (BTC<\/a>) and Ethereum (ETH<\/a>) networks already \u201cexecute close to four and 13 TPS, respectively.\u201d The stablecoin\u2019s initial figures-which if not improved on-undercuts Diem\u2019s perceived appeal and the unsubstantiated claims that it poses a threat to the global financial system.<\/p>\n Many central banks and governments around the world expressed alarm<\/a> when Facebook and its partners announced the impending launch of Libra in 2019. Since then, some central banks immediately began exploring the possibility of launching their own central bank digital currencies to forestall Libra. Since then, the company changed the stablecoin\u2019s name and branding from Libra to the \u201cDiem dollar.\u201d<\/p>\n <\/ins> <\/ins> <\/p>\n Yet based on these testnet results, Diem compares poorly against the payments giant, Visa which can execute \u201c1,700 transactions each second.\u201d Visa\u2019s transaction throughput, which is 70x more than Diem\u2019s highest reported tps, exposes the baseless fearmongering that followed Libra\u2019s announcement.<\/p>\n Despite the many challenges, the determined Diem Association says it plans to \u201croll the testnet out and into the hands of potential users, potential customers, and potential companies.\u201d<\/p>\n What are your thoughts on Diem\u2019s reported testnet tps? Share your thoughts in the comments section below. <\/strong><\/em><\/p>\n The post Testnet of Facebook\u2019s Much Vaunted Stablecoin Only Executes 6 Transactions per Second<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n![\"Testnet](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2020\/12\/diem.png\" "\\"Testnet")
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