London-Based Financial App Threatens To Sue Libra Association Over Its Recent Name Switch to ‘DIEM’
Facebook-led Libra Association, which switched its name to Diem Association, faces a possible lawsuit from a London-based digital finance company bearing the same name.
Is it ever going to get better for Facebook-led digital financial project, Diem Association? After a year of legal battles across the world – starting with the Senate hearing, the negative comments from world leaders, and calls for heavy regulation – Libra chose to rebrand the project to ‘Diem’ on December 1, symbolizing a new beginning of the company.
However, according to the financial news website, Sifted, London based digital financial app Diem is threatening to sue the Association, claiming they are stealing their name. Speaking on Libra’s name switch on December 1st, the CEO of London’s Diem, Geri Cupi, complained that Libra’s name-switch to Diem would “significantly impact their growth” given their status as a small startup.
Diem app allows users to directly sell off their items, killing off the need to wait for a bidder on eBay. The application offers a “Bank of Things” whereby users can directly complete trades without waiting long for payment or a market.
The latest battle with Facebook-led Diem is set to extend longer, which could slow down Libra's planned launch in January 2021. Prominent fintech investor and Diem’s investor, Chris Adelsbach, called out Facebook and Libra Association for their negligence stating,
“It wouldn’t have taken that much effort for Facebook to find out if there’s another Diem in financial services… They obviously took the view that “we can just crush them, we’re Facebook.”
This is yet another roadblock in Libra’s journey, which has had a tough time ramping up support in regulation and development. Announced in 2018 as a 21 member team, top companies such as VISA, MasterCard, eBay, and Stripe have left the Association mauling on the lack of regulatory clarity the project is facing.