Libra is a stablecoin built by Facebook and powered by a new Facebook-created version of the blockchain. It was set to launch by January 2021 according to a recent report.
In a press release on Dec. 1, Libra Association has announced that it will change its name to Diem Association.
“Now transitioning to the name ‘Diem,’ which denotes a new day for the project, the Diem Association will continue to pursue a mission of building a safe, secure and compliant payment system that empowers people and businesses around the world.”
The rebranding aims to give a new face to the project after major setbacks following the intense regulatory battle it faced when it was announced last year.
But it is yet again embroiled in another legal battle and this time with Diem, a circular economy-oriented fintech company. The company had a soft opening last October. Its platform offers services for debit cards and instant selling of items online without a need to wait for bidders on eBay. The app acts as a “digital pawnbroker of sorts”. Currently, the app has almost 500,000 followers on Instagram.
In a recent statement by Diem co-founder Chris Adelsbach in an exclusive interview by media outlet Sifted, he stated:
“It wouldn’t have taken that much effort for Facebook to find out if there’s another Diem in financial services […] They obviously took the view that ‘we can just crush them, we’re Facebook.’”
In another statement, Diem CEO Geri Cupi, commenting on the issue:
“We were flabbergasted on 1st December to find that Facebook’s Libra Foundation had chosen to rebrand to Diem… As a small startup, we are concerned that customer confusion resulting from Libra’s actions will significantly impact our growth.”
Unfortunately, the stablecoin is also set to go against global regulators also. On Dec 7, Olaf Scholz, Germany’s finance minister, stated that the project was “a wolf in sheep’s clothing.” He made the comment in the recently concluded conference with G7 ministers and central bank heads.
“We must do everything possible to make sure the currency monopoly remains in the hands of states.”
Paypal was one of the members of the Libra Association but has decided to withdraw its support due to several concerns. It has now adopted BTC (bitcoin) and other digital assets in its platform and launched its live trading last Nov. 12 for its eligible customers in the U.S.
Libra has gone through major setbacks mainly because regulators fear that it will disrupt the global financial system.
With Libra facing another lawsuit, will the anticipated launching ever happen? Goliath Facebook versus David Diem, who do you think will win this battle? Will Facebook prevail against Diem? Your thoughts.