Facebook-backed digital coin Libra rebrands itself as Diem

Libra

Facebook-backed cryptocurrency Libra was rebranded “Diem” in a renewed effort to get regulatory approval by dreading the project’s genuine independence.

Plans for Libra, initially spanned by Facebook this past year, were slimmed-down in April after authorities and central banks increased concerns it might upend financial equilibrium, erode control over monetary policy and undermine privacy.

Tuesday’s name switch is part of a move to emphasise a simpler, revamped arrangement, Stuart Levey, Chief Executive Officer of the Geneva-based Diem Association behind the planned electronic coin, stated.

“The original name was tied to an early iteration of the project that received a difficult reception from regulators.

Diem, so “day” in Latin, today aims to initially launch a single dollar-backed digital coin, he added.

He declined to comment on time for the launch, and also the Financial Times reported last week could be as early as January, saying only that it would only go ahead following approval from the Swiss markets watchdog.

Facebook, which changed the name of its payments unit Calibra to Novi Financial in May, remains one of 27 members of the Diem Association, formerly the Libra Association. Novi’s head, David Marcus, is one of Diem’s five board members.

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“They are a critically-important member of the association,” said Levey of Facebook’s continuing participation.

“We are not trying to cut all ties, by any stretch. It (the name change) is to signify that the association is operating autonomously and independently,” he added.

Diem intends to set itself apart from others by its focus on aspects of concern to authorities and western governments, including sanction controls and fiscal crime, Levey said.

The job has said it would develop policies on anti-money laundering, terrorist financing and sanctions compliance and has ditched earlier plans to permit anybody to combine its network.

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Anna Irrera and Tom Wilson in London. Editing by Alexander Smith.

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