Facebook Renames Libra to “Diem” Ahead of 2021 Launch
Libra Association, the organization in charge of Facebook’s cryptocurrency project, has rebranded the stablecoin again, ahead of the anticipated launch next year. The move is to ensure that the project meets regulators’ criteria in Q1 2021.
A New Days For Facebook’s Crypto
According to the changes revealed today, the project will now be called Diem, a Latin term for “day” because the Association believes it is a “new day” for the project.
Announced in June 2019, the Libra project has received disapproval from regulators worldwide as concerns and controversies were raised over the cryptocurrency project’s launch.
Regulators believe that Libra could disrupt the existing financial system since Facebook already has enough power through its social media platform.
Launching a Limited Version
Following the continuous backlashes, the Association redesigned the project, cutting down its initial plans. At the time, the Association said it would create a single currency stablecoin pegged to the value of different fiat currencies.
Although Diem will be pegged to multiple fiat currencies, the Association said last month that it would launch the stablecoin next year in a limited version pegged to only the U.S. dollar.
With the project now rebranded, the Diem Association hopes to continue its mission of “building a safe, secure and compliant payment system that empowers people and businesses around the world.”
Diem Is More Regulation Friendly
According to Stuart Levey, the Diem Association’s CEO, the project has been redefined to comply with international financial regulations, including the Financial Action Task Force’s rule and Consumer Protection rules. Levey added that the project was renamed to prove that significant changes have been made to the regulator.
The Association is now ready to launch Diem next year as soon as the project is licensed by the Swiss Financial Market Supervisory Authority (FINMA). However, a definite time frame has not to be revealed.
The CEO believes regulators will accept the project this ti. Several significant changes have been made to the project, including leadership of the Association and transitioning the project to a more regulation-friendly one.