Facebook had ambitious plans for its Libra cryptocurrency and in trying to make it a more legitimate unit of trade more than many of the other cryptocurrencies out there, it managed to raise concerns about its dubious history of customer and data privacy. The wheels were falling off of the project, especially when big FinTech players started to drop off.
To try and assert its organisational independence from the social-media giant ahead of its attempts to gain regulatory approval, the company handling Libra, the Libra Association, has now been renamed to the Diem Association, with the currency itself being referred to as the Diem Dollar (according to Bloomberg).
When Facebook first announced the project, it was an attempt – along with other major partners – to build a legitimate economy behind the cryptocurrency that would make it a lot less volatile and speculative than the likes of Bitcoin. The plan was to usher in the true age of digital currency, but as these ideas started to fall apart around the Facebook concerns and partners exited, Libra’s scope shrunk and instead of being pegged to multiple currencies as initially desired, it will simply be attached to the US dollar. It could grow bigger again if the early model proves successful.
Facebook may be stepping away from involvement with the initial foundation of the cryptocurrency, but is still developing its own Novi wallet which will work with the Diem dollar and will likely be the early driver in trying to get this new currency adopted.
Last Updated: December 3, 2020