Facebook-Led Libra Rebrands to ‘Diem’ in Attempt for a ‘New Start’ & Gain Regulatory Approval
Facebook has rebranded its stablecoin project Libra as “Diem” in its latest effort to gain regulatory approval. The new name comes after the Latin word “day” — denoting “a new day for the project.”
The Diem Network is preparing to launch its first digital coin as early as January next year, called the Diem Dollar.
First announced in June 2019, the project that aims to build a safe, secure, and compliant payment system received a lot of backlash from the regulators and raised concerns among the central banks over its impact on financial stability and monetary sovereignty. Stuart Levey, CEO of the Geneva-based Diem Association, said,
“The original name was tied to an early iteration of the project that received a difficult reception from regulators. We have dramatically changed that proposition.”
“We wanted a new start.”
As we reported, the team is currently waiting to obtain a license from Swiss regulators to launch. It is also in talks with the US federal and state regulators but isn’t waiting for approval from them.
To satisfy regulators, Diem will comply with the sanctions and regulatory reporting requirements. “All of these design features we think make for a project we think that regulators will welcome,” Levey said.
The new network has also abandoned the 100-member goal and currently has 27 participants. The idea is to take things even more slowly; as such, just one digital currency — US dollar-pegged stablecoin — is being launched for now. It may pursue additional fiat-based cryptos later, said Levey. He added,
“We are not trying to cut all ties, by any stretch. It (the name change) is to signify that the association is operating autonomously and independently.”
The Diem Association also has no more plans to eventually transition to a permissionless blockchain to allow everyone to participate in verifying transactions.