“A new name for a new day”. Since we could change the hairstyle to symbolize a fresh start, the Libra Association has taken on a new identity. It becomes the Diem Association (“day” in Latin). Whose goal? Confirm “the growing maturity and independence of the project,” said the Switzerland-based organization in a press release. He also announces the arrival of new key recruits.
Diem. A new name for a new day that is easy, safe, and affordable to send money anywhere.
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Together we are building a trustworthy, innovative financial network for people and companies around the world.
Visit our work: https://t.co/SKGuO1eagJ pic.twitter.com/grgtUUT3LL
– Diem Association (@DiemAssociation) December 1, 2020
Recall that in April 2020 the project was received with a bad eye: governments, central banks and regulators did not appreciate the close proximity between the association and the giant Facebook. They had also examined certain aspects of the project such as risks to the stability of the financial system, the fight against money laundering or the protection of personal data. “The original name was associated with a first iteration of the project that was difficult to pick up on by regulators. We have radically changed that proposal, ”admits Reuters, the association’s new CEO, Stuart Levey.
Relative independence with Facebook
Nevertheless, Facebook remains an important partner of the project, according to Stuart Levey even “an essential member”. “We’re not trying to cut ties, far from it. The goal of Mark Zuckerberg’s company remains to play an important role in digitizing international payments, making them as easy as a private message on Messenger, and most importantly, getting the maximum value. Facebook also renamed its digital wallet project and discontinued Calibra for Novi in May 2020.
The Diem association, based in Geneva (Switzerland), has 26 other members, including PayU (online payment service), Uber and Lyft (transport services), which specialize in the cryptocurrency Coinbase, Spotify, Shopify and Iliad (home) – Mother of Free). Some important partners such as Vodafone, Paypal, Ebay, Visa and Mastercard have nevertheless withdrawn.
A start for January 2021?
The association’s CEO confirmed that the Diem currency will initially only be introduced in a dollar-supported version. Despite rumors of a launch in January 2021, no schedule has yet been set. The association says it will not officially start a service until it receives regulatory approval. Among other things, she is waiting to obtain the payment system license issued by the Swiss Financial Market Authority (FINMA), the application for which was submitted in April. In order to preserve these famous green lights, it has revised its ambitions in a second white paper.
While the Diem Association waited to take the next step, they could see the arrival of new competitors, much more powerful and sovereign, developing their central bank digital currency (MNBC). The French Economy and Finance Minister Bruno Le Maire proposed the creation of a public digital currency in 2019. That idea has since reached the ears of the European Central Bank. The latter launched a public consultation on the digital euro project last month.