In pursuit of regulation! Libra renamed to Diem, awaiting approval from Swiss regulatory authority for issuance.
Initiated by Facebook and as a key member, the cross-border payment system Libra, which abandoned the open system Libra 1.0 due to regulatory obstacles, underwent major modifications in April 2020 to become a highly regulated permission-based system - Libra 2.0. On the evening of December 1st, it was announced that it would be renamed Diem.
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Seeking Independence from Facebook's Image? Diem Looks for Autonomy
Despite Facebook's repeated emphasis that it is just one of the members of the Libra Association and cannot fully control the development of Libra, regulatory agencies and public opinion seem unable to overlook its strong association with Facebook.
Current CEO Stuart Levey stated that renaming Libra to Diem is to emphasize a more simplified and revamped organizational structure. He said, "The original name caused misconceptions among regulators as it was the same as the original plan. We want to strongly change that perception."
In Latin, Diem means "day," and it aims to issue a digital currency pegged 1:1 to the US dollar as its issuance target, although Stuart Levey did not specify the issuance date. Earlier, the Financial Times reported that upon approval from the Swiss Financial Market Supervisory Authority, the digital currency could be issued as early as January 2021.
Diem Welcomes New Members, Facebook's David Marcus Still Holds Key Role
Prior to the rebranding to Diem, the Libra Association continued to announce many new executive team members from traditional finance, regulatory bodies, and those with political connections. Current CEO Stuart Levey only took office in May of this year, previously serving as the Chief Legal Officer at HSBC, with new appointments made from May to November.
Meanwhile, Facebook's David Marcus, while still a board member, now serves as the head of Diem's wallet Novi, previously known as Calibra. Following the announcement of Diem, David Marcus congratulated the move on Facebook, presenting a more subdued demeanor. He is no longer the first to simultaneously announce related news but posted an hour later on Facebook: "Libra has a new name, but the goal remains the same. Stuart Levey's leadership of the team is impressive. Novi will continue to support the Diem Association as one of its members. We look forward to doing our best to build the best wallet to serve people."