Driven to change this focus, Facebook opted for a name change as a means of offering the association a new chance to impress regulators and establish itself in the growing crypto market.
With the rebranding, what was formerly known as the Libra Association will now be referred to as the Diem Association. “Diem” is a Latin word for “Day”. The branch of the Diem Association will be the Diem Networks, which is expected to serve as the system operator to manage all matters payments, thereby laying all the groundwork for the Diem Dollar currency.
In a statement by Stuart Levey, the CEO of the Diem Association, the new name signifies their vision for the currency, a new day. This name change is expected to be a new start for the association and a gateway into new ventures.
How Libra Started and How it is Going
The official launching of Libra took place in 2019, and right after this debut, political players joined hands with crypto regulators to challenge what it represented. As part of their concern, Libra would infringe policies on privacy and facilitate money laundering. Libra was also opposed because of its potential to give companies such as Facebook and other crypto developers power over the Central Bank.
At first, Libra had wanted to design a cryptocurrency that had government backing in the form of a basket of fiat currencies and securities. They also had plans of attracting up to 100 members before the launch date. The opposition saw the supporters of this Facebook development like PayPal and Visa abandon their support for the project.
As it stands, Diem Association boasts of 27 active participants and plans to release a stablecoin. The stablecoin will take the form of a digital currency hinged upon an external asset while at the same time linked to the United States Dollar. As such, the Diem would be able to shadow more fiat-oriented cryptocurrencies.
The Readiness of the Diem Association
Diem Association is no longer dependent on 100 members for launching with calculated plans for expanding their ranks. They also dropped all plans for transitioning into a “without permission” kind of blockchain and now require only authorised persons to verify transactions over the platform.
Standing in this ready state, other intrinsic project functionalities could be modified. First, with the scaling down of aspirations, their appeal to the public has also taken a hit. The competition from other United States-based stablecoins like Tether and USD fiat does not make it any easier.
The fact that Facebook has many users means that Diem could still have a chance to thrive. Out of the two billion users Facebook commands, a huge percentage is expected to give Diem a second chance. Diem has already set motions in place to receive a license from the Swiss regulators for launching, while at the same time holding talks with the United States Federal and State regulators. However, the delay of these licenses will not keep them from launching on their set date.