Facebook’s Libra changes name to Diem

Written by: Ali Raza
December 2, 2020
  • The name change is coming when the Libra association wants to launch a single coin supported by one dollar.
  • Facebook Libra has faced severe regulatory hurdles ever since the project was announced.
  • The goal of the name change is to try and draw support from regulatory bodies towards the project.

Social media giant Facebook has announced a change of name for its digital asset Libra. The name change will happen today, as Facebook tries to win regulators hearts regarding the digital asset.

The much-publicized Libra has not seen the light of the day, as it has been facing severe regulatory disapprovals from various regulatory bodies. However, the parent company Facebook has taken another step to show that the project has “organizational independence”.

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The Libra project was initially met with widespread pushback because its ambitious goal may threaten the existence of the mainstream government financial systems. Also, it received backlash for being a project coming from Facebook, as many feel it will give Facebook an undue competitive advantage.

Building a compliant payment system

 According to the report on the name change, the Libra Association, which is the independent organization that runs the project, will now be known as the Diem Association, with its currency known as the Diem Dollar from today.

While announcing the change of name, the “independent organization” said the goal of the project remains the same, which is to build a secure, safe, and compliant payment system.

The name change is coming when the Libra association is planning to roll out a single coin supported by one dollar, as reported by the media.

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Libra Association trying to appease regulators

The regulatory hurdles and controversial nature of the coin means that it has shrunk significantly since its launch was first announced. However, major launch partners of the coin gathered around to offer full supports in quick succession last year. It was decided that a change of name would be the best for any progress the developers will make towards the coins.

Last year at the House Financial Service Committee, Congress members were not particularly supportive of the ambition of the Libra as they expressed distrust about the project’s goals.

They questioned Facebook’s Chief Executive Officer Mark Zuckerberg about the true nature of the project and whether it will not disrupt the financial systems of governments.

To gain back more trust from the regulators, the association said last year that the crypto coins will provide stable coins backed by a single nation’s currency, either in Euro or in Dollar. And last year, many of the top financial heavyweights denounced their support for the Libra Project. Companies such as eBay, Visa, MasterCard, and PayPal pulled out of the project. But the recent move by the Libra Association is aiming at gaining back more trust and support for the project.