Libra, the cryptocurrency project launched by Facebook, is changing its name and expects to launch the dollar-based stablecoin soon.
The Libra association has completed its rebranding and will relaunch under the name of Diem – as in the Latin phrase «carpe diem». The 27 companies that are part of the project on Tuesday presented an update of their plan.
The group wants to use the momentum to issue the cryptocurrency, which will be backed by the dollar, in 2021. The Diem Dollar, a so-called stablecoin, first needs approval from Switzerland's Finma, the country's financial-market regulator.
Faced With Heavy Barrage of Criticism
Libra Association, which is based in Geneva, had filed a revised application in April 2020 – finews.com had reported on the filing and the response of the government.
Observers have said that the rebranding helps the consortium break with the past when it ran into trouble with the first version of its plan. Regulators, government, and the central bank had criticized the project for a global coin, in particular in respect to money-laundering concerns and its effect on monetary policy. Several heavyweight members as well as executives left the project subsequently.
Central Bank Will Counter the Private Bids
Central banks themselves have been working hard on their own digital currency projects, with the Swedish, Chinese and European institutions at the forefront. The Swiss central bank (SNB) is about to present its digital franc to the public. The digital franc will only be made available to financial-market participants though, unlike for instance the digital euro or digital krona.
