The Case of Diem: A Distributed Ledger Technology-based Alternative Financial Infrastructure Built by a Centralised Multisided Platform Jafari Golnaz A. Gruber Malte-C. In pursuing its declared mission “to enable a simple global currency and financial infrastructure with a safe, secure and compliant payment system that empowers billions of people,” Diem has encountered apparent resistance from various social fields and politics. On the one hand, many critics recognise dangers to state currency sovereignty and the stability of the financial system; on the other hand, they fear negative developments regarding money laundering and the financing of terrorism. In addition, there are considerable concerns about an ever deeper erosion of privacy, consumer and data protection, which reaches a new dimension by linking such world currencies with already existing social networks governed and controlled by private entities. Under these circumstances, the chance of success of the Diem project clearly depends on the extent to which the aforementioned concerns can be dispelled and whether public trust can be established. Together with an overview of the developments of the Diem project since the inception of the underlying idea, the authors highlight the actors and their respective roles in an infrastructure primarily run and operated on distributed ledger technology (DLT), with computer nodes distributed across different jurisdictions. Moreover, it is argued that the level of control by end users over their digital representations and online footprints remains untested in the context of a worldwide digital financial infrastructure as proposed by Diem. The paper further elaborates and puts data protection and privacy of end users under scrutiny, outlining the need for a self-sovereign identity (SSI) management system in order to address the risks associated with correlation and profiling of individuals concerning their behaviour in payment systems. CBDCs DLT Diem Distributed Ledger Technology Facebook Libra SSI blockchain central bank digital currency crypto-assets network governance self-sovereign identity trust, digital identity 340 periodical academic journal JIPITEC 12 4 2021 301 330 2190-3387 urn:nbn:de:0009-29-54027 http://nbn-resolving.de/urn:nbn:de:0009-29-54027 jafari2021