Carpe Diem ! You still have to worry about the next day when you manage a major project like Libra, now renamed as Diem. But will this name change be accompanied by a change in the position of regulators who opposed the launch of Libra? Diem is trying to break away from Facebook, but the stablecoin is not free of movement.
Diem to break free from Facebook
Facebook adopted a new name for its cryptocurrency, hoping to gain approval from the monetary authorities.
The CEO of the Association, Stuart levey, indicated that it was to mark the will of the project to dissociate itself from the image of Facebook.
Another executive manager, David Marcus, said regulators should give cryptocurrency the benefit of the doubt Diem and authorize its launch in 2021.
During the Singapore fintech festival December 8, 2020, Marcus asserted that Diem and his wallet Novi could be launched at the start of 2021.
The project is still awaiting approval from the Swiss financial market supervisory authority (FINMA).
A spokesperson for the institution said that in accordance with its usual policy, the FINMA would not publish any public information about the process or the potential date of its completion.
Nein: a rebranding that does not convince!
After a difficult year facing international regulators, Diem will therefore take the form of a stablecoin guaranteed by the US dollar.
The initial currency basket included several fiat currencies that include the euro, Japanese yen, British pound and Singapore dollar.
Some observers believe that the appointment of the former legal officer of HSBC, Stuart levey, as CEO of the Association is a turning point for the project.
This rebranding does not seem to have convinced everyone: the German Minister of Finance, Olaf Scholz, had said that this change did not change the fundamentals of the project and that the German government would oppose its introduction in its market.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
With the advance of China and its crypto-yuan, European regulators probably do not want to deal with another euro competitor who is in trouble by the covid-19 crisis and Brexit. Diem is backed by the dollar, so Uncle Sam could open the door for him. Facebook’s stablecoin is not a CBDC but, it looks like it from a geopolitical perspective. Facebook now has more users than a country. Zuck in power, the Diem as currency, all that remains is to appoint a finance minister and compose an anthem.
Litecoin, welcome in the Silver Age