Libra: Facebook's cryptocurrency changes its name to Diem

Libra: Facebook's cryptocurrency changes its name to Diem

Posted by Farrukh Shah

Tuesday, December 8, 2020

currency Cyber Security digital economy Facebook Social media Tech

Libra: Facebook's cryptocurrency changes its name to Diem | Flash News

The goal of this name change is to mark a little more distance between Diem - formerly Libra - and Facebook, its initiator

The development of its cryptocurrency will not have been a long quiet river for Facebook. The project has been strongly criticised by many regulators. They feared that Facebook's cryptocurrency could be a threat to the monetary sovereignty of states.

Criticisms have slowed the development of Libra, which was originally scheduled to launch in the first half of 2020. Facebook's cryptocurrency is finally expected to be launched in January 2021, according to the Financial Time. But for this to be done in the best conditions, the Libra will henceforth be named Diem, which means "Day" in Latin.

Nothing is played

This name change aims to mark a little better the independence of the cryptocurrency from Facebook, but also the maturity of the project. In the end, Facebook is just one of 26 members of the Diem Association. Based in Switzerland, this association is in charge of the supervision and management of the future cryptocurrency.

"The Diem project will provide a simple platform for fintech innovation to thrive, consumers and businesses to make instant, low-cost and highly secure transactions," said Stuart Levy, managing director of the Geneva-based Diem Association. "We are committed to doing so in a way that promotes financial inclusion, by expanding access to those who need it most, and simultaneously protecting the integrity of the financial system through deterrence and detection of illicit behaviour," he said.

Diem will still need to obtain approval from the Swiss Federal Financial Market Supervisory Authority in order to be launched. It should also be noted that the initial project has also evolved since Facebook's cryptocurrency will initially be based on the value of the dollar, not on a reserve of currencies and assets.

Source:- Flash News and News Agencies