Sand is not going to cause diatoms. The diatoms are normal in new tanks during the first few months (sometimes, not always) because the biological system is not yet established. I would not gho to extremes concerning the diatoms, just have lots of plants and this problem should disappear.
However, the sand here is problematic, first for being white which will stress fish, and second for its possible roughness. You mention loaches...which species? Some like to dig and bury themselves or they dig to excavate their personal "home" usually under a chunk of wood. Sand is preferable for loaches just as it is essential for cories.
However, the sand here is problematic, first for being white which will stress fish, and second for its possible roughness. You mention loaches...which species? Some like to dig and bury themselves or they dig to excavate their personal "home" usually under a chunk of wood. Sand is preferable for loaches just as it is essential for cories.