Facebook has rebranded its Digital currency to Diem from Libra. The firm behind the development of the project was renamed from Libra Association to Diem Association. Facebook-led digital currency initiative, according to a Financial Times report, will enter the market in early 2021, in a somewhat more compressed fashion with a new name than expected in previous months.
Libra to Diem
In a renewed attempt to obtain regulatory approval by emphasizing the autonomy of the digital project, Facebook-backed digital currency Libra was rebranded “Diem”. The new name incorporates the word Diem, which stands for day in Latin. For instance, Carpe Diem, meaning “seize the day,” is used in a popular Latin term, “enjoy the present and stop worrying about the future.”
The Diem team noted that the new name represents a new chapter in the creation of the project and enhances its vision of developing a safe and secure payment system in complete compliance with regulatory requirements.
The Financial Times announced that Diem’s launch could take place as early as January 2021, adding that it would move forward after the authorities approval. In reality, the Swiss-based Diem Association, the governing body of the digital currency, is currently pending approval by the Swiss Financial Market Supervisory Authority.
The Diem (Libra) Association, headquartered in Geneva, will unveil a digital currency backed by the dollar, the outlet explains, quoting one of the sources familiar with the case. The combination of multiple currencies will not occur and this is due to pressure from banks and regulatory bodies.
Reuters reported German Finance Minister Olaf Scholz issued a sharply worded statement after Finance ministers and central banker G7 meeting, underscoring his concerns about authorizing the launch of Facebook’s Libra or newly renamed Diem in Germany and Europe.
“A wolf in sheep’s clothing is still a wolf,” he said. “It is clear to me that Germany and Europe cannot and will not accept its entry into the market while the regulatory risks are not adequately addressed.” He further added: “We must do everything possible to make sure the currency monopoly remains in the hands of states.”
The head of Facebook Financial, or F2, David Marcus, said that he expects regulators can provide the company with the “benefit of the doubt,”
Global regulators, particularly those in Europe, believed that Diem could at least in principle, alter or even weaken their authority dramatically. Diem (Libra) has the ability to attract billions of consumers in a comparatively short amount of time, unlike bitcoin and other cryptocurrencies, whose appeal is limited to a handful of individuals.
The topic of Diem is according to reports, subject to the approval of the Financial Market Supervisory Authority (FINMA). It is responsible for controlling independent financial markets in Switzerland, supervising banks, insurance firms, etc. If approved, Diem will compete with cryptocurrencies that are considered comparatively stable currencies and connected to the US dollar, such as USD Coin (USDC), Tether (USDT) or TrueUSD (TUSD).
— Fyggex (@fyggexchange) August 12, 2020
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