After an unsuccessful attempt to get regulatory approval to launch its own cryptocurrency, Facebook has decided to rebrand and submit an application one more time. This is why the Libra cryptocurrency is getting a new name, Diem.
The new name also highlights the new structure of the project. "We like the connotation of it kind of being a new day for the project,” the group’s chief executive officer, Stuart Levey, said in an interview. "We wanted a new start," he added. All these changes, including structural ones, were the result of long discussions between the creators of the new digital currency and representatives of leading regulators in Europe and the US.
The initial Libra project received widespread pushback from financial regulators in part because it emerged out of Facebook and in part because it could undermine traditional government-run financial systems and compromise privacy. As a result, Facebook had to change its approach. "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 said in a press release.
By launching the Diem project, which means "day" in Latin, Facebook aims to establish a digital coin backed only by the US dollar. Levy refused to provide any comments on the recent reports about Diem’s debut in the market in January. He hinted that the digital currency would be launched only after obtaining approval by the Swiss regulator.
