Facebook-backed Libra Association has been renamed Diem

The Facebook-backed Libra Association is renaming itself to Diem.

(News) - David Marcus, now head of Facebook Financial or F2, testifying about Facebook’s proposed digital currency previously known as Libra, during a Senate Banking, House and Urban Affairs Committee hearing on Capitol Hill in Washington, DC, July 16, 2019. The cryptocurrency was renamed Diem in December 2020.

Libra Association, a Facebook-backed digital payment group, said Tuesday it’s transitioning to the name “Diem.” Diem is an independent group organized by Facebook to manage digital currencies. Other association members include Andreessen Horowitz, Coinbase, Spotify, Lyft and Uber.

The currency’s name will also change from libra to Diem, according to Reuters.

Here's exactly what happened:

After the libra digital currency debuted, the project quickly drew concern from policymakers around the world who worried it could heavily disrupt the financial system, risk potential money laundering and compete with fiat currencies such as the U.S. dollar.

Diem said the new name, which is Latin for “day,” “signals the project’s growing maturity and independence,” as it seeks regulatory approval for its launch. The Financial Times reported last month that it could launch as soon as January but in a limited format.

The Diem currency was designed to make it easier for people and businesses to securely send money across the world. Unlike bitcoin and other cryptocurrencies, which can be hugely volatile and speculative, Diem will be backed by government currency. That means some coins offered by the group would serve as the equivalent value of a U.S. dollar or a Euro, for example.

Facebook’s rebranded its digital wallet earlier this year to Novi from Calibra. Novi will let people send money to one another in an app or through Facebook Messenger and WhatsApp.

What is Diem? (Formerly FaceBook’s Libra Project) – A Detailed Analysis

One of the most controversial cryptocurrency projects ever, Libra, is now back as a less-threatening version – Diem. Last year, the entire crypto market felt ripples of excitement when the American social media giant, Facebook, Inc announced plans to enter the industry. At that time, the platform sought to make a bold entrance with its permissioned blockchain-based payment system and stablecoin dubbed Libra. The move would have revolutionized money transfer and positioned Facebook and its partners on the ground floor of the blockchain-based digital payments sector.

However, the project turned out to be a little bit more than politicians and lawmakers were ready to accept. Libra saw immediate regulatory push-back for a variety of reasons. Regulators voiced a myriad of concerns regarding the effects of for-profit tech firms issuing currencies. Some lawmakers believed that this maneuver would give them too much power by injecting these platforms into global economics and geopolitics.

Soon, lawmakers’ concerns hit a fevered pitch. Notably, the House Financial Service Committee held a hearing last year regarding the matter. In the hearing, members of congress took turns blasting Facebook’s CEO, Mark Zuckerberg. They voiced concerns ranging from election meddling all the way to disinformation campaigns run by foreign governments.

There were also concerns regarding the classification of this new type of currency and what branch of the government would oversee the operation. It was easy to see that Facebook lacked the trust to pull off the launch of Libra as is. Lawmakers even halted all further Libra discussion until they could get a better understanding of the project.

The original Libra concept was to launch a stablecoin backed by a basket of assets. The stablecoin would be more stable than anyone fiat currency and it could be used worldwide as a means of exchange. The original plan saw Libra designed broadly similar to other cryptocurrencies like Bitcoin but with fundamental differences intended to make it more stable and less of a speculative asset.

What’s Different About Diem?

Diem is more than just a renaming of the Libra blockchain. The developers behind this concept decided it was best to alter its plans for Libra to speed up the regulatory approval process. The name change is part of these alterations. Developers decided that the Libra name was no longer appropriate because it was tied to an earlier iteration of the project.

One of the main changes that occurred when Libra became Diem was the reduction of Facebook in the equation. Lawmakers want organizational independence from the social media network if the project is ever to gain enough trust to win regulatory approval. The project recently revised its white paper with the goal to reduce Facebook’s role.

Benefits of Diem

Diem brings some significant advantages to the market and to individual users. The token would have the benefit of instant adoption. The launch of Diem would signal a new era in cryptocurrency usage. Facebook has billions of global users who would all suddenly become cryptocurrency users. The effects of such a fast rollout would help to educate masses of people on the endless advantages of blockchain technology.

This huge network of users would also attract numerous developers to the platform. Dapp developers could leverage Diem to create new and exciting fintech applications that would have instant access to a huge crowd of potential users. Developers could then adjust and alter their application depending on the global feedback they received from the Diem network.

Diem is fast. Both consumers and businesses can conduct instantaneous, low-cost, highly secure transactions using this network. Facebook users could send payments internationally in seconds. This flexibility and freedom could help to cement Diem as a major global currency in only weeks.

Possible Effects of Diem

Diem has the potential to alter the cryptocurrency landscape more than any other project so far. Facebook’s network encompasses billions of users. Providing this global community instant access to blockchain services is revolutionary in many aspects. For one, it could alter the way money is sent globally for all users of the network. No more would Facebook users utilize money transfer services or remittance firms to send value internationally.

Additionally, the integration would also push Facebook’s marketplace to new heights. The Facebook market place continues to see growing adoption. Users are able to easily search, sell, and buy items from other local users via this network. As it stands today, the Facebook network directly competes with local-based sales platforms such as Craigslist. The addition of a secure payment method would boost usage to new heights. Users could also purchase items that aren’t locally available with more confidence.

Should I invest in Facebook Diem (Libra)?

In our thoughts, You should invest in this as early as possible gain huge profits as each of those founding companies is paying at least $10 million into the currency’s reserve. Like all of Diems’s founding members, Facebook will get only one vote in its governing association. If the new currency succeeds, the founding companies and other early investors would stand to receive interest from the Diem reserve fund.

Where to buy Facebook Diem Coin Cryptocurrency?

While the Diem coin available to everyone with an internet connection will be backed by ordinary currencies and government securities, interest earned on that collateral will go to holders of the investment tokens. You can buy Facebook Diem currency from their website . The Diems (by Libra) platform is available for early adopters.

The Diems (by Libra) platform is available for early investors. Discover Diems Libra Platform today