Libra has been renamed “Diem” in a new attempt to obtain regulatory approval by emphasizing the project’s independence from Facebook.

Libra, first launched by Facebook last year, scaled back its ambitious plans in April after regulators and central banks raised concerns that it could destabilize the financial system, undermine control over monetary policy, and threaten privacy.

The name change is part of a movement to emphasize a simpler structure, said Stuart Levey, CEO of the Geneva “Diem Association”.

CEO Stuart Levey

“The name Libra is associated with an unpleasant look from the supervisory authorities. We made significant changes to this original proposal, ”Levey told Reuters.

Diem, which means “day” in Latin, is now aiming to introduce a US dollar-backed digital currency, Levey added.

The CEO declined to comment on the timing of the launch, which the Financial Times reported last week that it could be as early as January next year, saying only that it would be after the adoption by the Swiss market regulator.

Facebook, which renamed its payment wallet Calibra to Novi Financial in May, remains one of the 27 members of the Diem Association. Head of Novi, David Marcus, is one of five members of Diem’s ​​board of directors.

“You are an extremely important member of the club,” says Levey.

“We definitely don’t try to break off all relationships. It (the name change) is meant to mean that the association operates autonomously and independently, ”he added.

Diem aims to stand out from the crowd by focusing on aspects of interest to Western regulators and governments, including sanctioning control and financial crime, Levey said.

The project says it will develop anti-money laundering, terrorist financing, and sanction compliance guidelines, and has abandoned previous plans to allow anyone to join its network.

Kang Hy

According to Reuters

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