The much awaited and debated cryptocurrency of Facebook is renamed itself as Diem .The project plans to get detached from the company as it attempts to get regulatory approvals for launch. The project initially received lot of hurdles as it was part of the social media platform Facebook. The independent organization that runs the project, the Libra Association, will now be known as the Diem Association, and Bloomberg reports that its currency will be called the Diem Dollar.

Diem, as it is now known, has shrunk significantly in scope since it was first announced. Major launch partners pulled support  in quick succession last year because of its controversial nature and the regulatory hurdles it faced due to concerns from lawmakers. At a House Financial Service Committee hearing last year, Congress members expressed significant distrust of Facebook as they questioned company CEO Mark Zuckerberg about the project’s goals.

 According to The Financial Times , the cryptocurrency could debut as a single coin backed by the dollar, with an initial launch as early as January 2021. Libra was initially meant to be a single coin pegged to multiple currencies for stability that could be traded in place of them; it was later changed to also offer multiple coins that would each be backed by a different currency. Those coins would be “a complement to, not a replacement for, domestic currencies,” the organization wrote in April.

“The Diem project will provide a simple platform for fintech innovation to thrive and enable consumers and businesses to conduct instantaneous, low-cost, highly secure transactions,” Stuart Levey, Diem Association CEO, said in a press release .

Facebook initially pitched Libra as, essentially, a mainstream cryptocurrency that could be spent online or offline, much like the dollar. It was meant to make digitally transferring money quicker and easier than it is today, and companies like Facebook would be able to offer financial services around it. Facebook initially announced plans for a digital wallet , called Calibra, that could offer these services, with the company positioning Calibra as its means for turning its investment in the project into a potential moneymaker. The wallet app has since been renamed Novi.

Source- The Verge

Country- U.S