Facebook changes the name of the digital currency from pound to daily rate – 12/01/2020 – market

Facebook’s cryptocurrency scale was renamed “diem” in order to gain regulatory approval, emphasizing the project’s independence.

Pound plans, released by Facebook last year, were hit in April after regulators and central banks raised concerns that it could hurt financial stability, undermine control over monetary policy and compromise privacy.

The name change is part of a movement to emphasize a simpler and renewed structure, said Stuart Levey, president of the Geneva-based Diem Association.

“The original name was tied to a first iteration of the project that was difficult to take on by regulators. We changed that proposal dramatically,” Levey told Reuters.

Diem, which means “day” in Latin, will initially be a dollar-backed digital currency, he added. Levey declined to comment on the timing of the launch, which the Financial Times reported back in January last week, only saying that it will only move forward after approval by the Swiss market regulator.

Facebook, which changed the name of its payment entity Calibra to Novi Financial in May, remains one of the 27 members of the Diem Association, formerly the Libra Association. Novi boss David Marcus is one of the five directors of Diem.

“We are in no way trying to sever all connections. This (the name change) means that the association is working autonomously and independently,” said Levey.

The idea is to set the Diem apart from others by focusing on aspects that affect regulators and governments, including controls over sanctions and financial crimes, Levey said.

According to the project, anti-money laundering, terrorist financing and sanction enforcement strategies would be developed, and previous plans were abandoned to allow anyone to join its network.

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