Facebook-backed Cryptocurrency Libra has been Renamed Diem
The Diem project will ensure people and business conduct instantaneous, low-cost, highly secure transactions
Facebook-led Libra cryptocurrency has been renamed, Diem. The independent association behind the project, which comprises 27 members, has also been renamed to Diem Association to reflect the new brand.
“The Diem project will provide a simple platform for fintech innovation to thrive and enable consumers and businesses to conduct instantaneous, low-cost, highly secure transactions,” Stuart Levey, Diem Association CEO, said.
Levy says the project is committed to providing fintech solutions that promote financial inclusion to those that need it the most and “simultaneously protecting the integrity of the financial system.”
The rebrand is to reinforce the Diem association’s organizational independence and maturity. The Diem Association received widespread backlash from governments and politicians partly due to Facebook’s participation. And the project was also deemed a threat to destabilize the traditional financial system by usurping power from the Central banks.
The backlash has led to the exit of several high profile members, and the project has scaled down its ambitions in a big way to try and meet regulators’ demands around the world.
“The evolution of the project results from constructive ongoing engagement with governments, regulators and other key stakeholders,” said Levey.
A recent report has indicated that the Diem Association will launch its stable digital coin, which will be pegged to the dollar one-by-one, as early as January.
Bloomberg reports it will be called Diem Dollar, although the association has yet to publicize its launch plans or what the coin will be called.
The Financial Times reported that the association would first launch a single stable coin backed by the US dollar and add more coins pegged to different fiat currencies in the future. For now, the Diem Association’s plans to get the project off the ground is contingent on approval by the Swiss Financial Market Supervisory Authority.
The Diem Association seeks approval from the regulator to launch the project as a payments service.
Rebranding is part of the major plans for the association to achieve regulatory approval and progress toward launch.
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