- This name change comes when the Libra Association wants to launch a single coin with one dollar support.
The Facebook Libra has faced severe regulatory hurdles since the project was announced.
The name change is an attempt to gain the support of the regulatory authorities for the project.
Facebook, the social media giant, has announced a name change for its digital asset Libra. The name change will take place today as Facebook seeks to win the hearts of regulators on the digital asset.
The much vaunted Libra has not yet seen the light of day as it has faced serious regulatory disapproval from various regulators. However, parent company Facebook has taken another step to show that the project is “organizationally independent”.
The Libra project initially met with widespread rejection because its ambitious goal could threaten the existence of the current state financial systems. It also received counter-reactions because it is a project coming from Facebook, as many believe that it will give Facebook an undue competitive advantage.
Building a legally compliant payment system
According to the report on the name change, the Scales Association, which is the independent organization that runs the project, will be known as the Diem Association with the currency Diem dollar from today.
While announcing the name change, the “independent organization” said that the goal of the project remains the same, namely to establish a secure, protected and compliant payment system.
The name change will come when the Libra Association plans to introduce a single coin with one dollar as its support, as reported in the media.
The Libra Association is trying to appease the regulators
Due to regulatory hurdles and the controversial nature of the coin, it has shrunk significantly since the first announcement of its introduction. Nevertheless, important partners for the introduction of the coin have gathered last year to offer full support in quick succession. It was decided that a name change would be best for any progress the developers would make on the way to the coins.
Last year in the House of Representatives’ Financial Services Committee, Congressmen did not particularly support the scale’s ambitions because they distrusted the project’s goals.
They asked Facebook’s Chief Executive Officer, Mark Zuckerberg, about the true nature of the project and whether it would not disrupt governments’ financial systems.
To regain more trust with regulators, the association said last year that the crypto coins will provide stable coins backed by a single nation’s currency, either in euros or dollars. And last year, many of the leading financial heavyweights denounced their support for the scale project. Companies like eBay, Visa, MasterCard and PayPal withdrew from the project. However, the recent move by the Libra Association aims to regain more trust and support for the project.