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Diem Review: Why it’s WORSE Than Libra!! πŸ€¦β€β™‚οΈ

Diem instead of Libra: will it help ...

Diem instead of Libra: will the name change help to appease the regulators
CONTENT

  • Facebook renamed its controversial Libra project to Diem

  • Diem Association hopes that this will help solve problems with regulators

  • Launch scheduled for January 2021

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Libra In June 2019, Facebook announced preparations for the release of the Libra digital currency. The social networking project immediately caught the eye … More, Facebook-backed digital currencyIn June 2019, Facebook announced preparations for the release of the Libra digital currency. The social network project immediately attracted attention … More, the next phase of rebranding is underway in the hope of solving the lingering problems with regulators

Diem instead of Libra: will it help ...

Libra appeared in mid-2019 and immediately turned regulators against itself. The authorities of many countries are convinced that this project will destroy the existing foundations of traditional monetary policy and threaten the financial system..

Meanwhile, it was the emergence of Libra that prompted Central Banks to rush to create their own digital currencies (CBDC).

Libra wants to please regulators by changing its name

The Libra project launched a rebranding, changing the name to “Diem”, which means “day” in Latin. Accordingly, the now Switzerland-based Libra Association has become Diem.In June 2019, Facebook announced preparations for the release of the Libra digital currency. The social networking project immediately caught the attention of … More Association. This was reported on the official Twitter and on the project website..

Diem. A new name for a new day, when it’s easy, secure, and affordable to send money anywhere.

Together, we’re building a trusted, #innovative financial network for people and businesses around the world.

Diem instead of Libra: will it help ...

Come see our work: https://t.co/SKGuO1eagJ pic.twitter.com/grgtUUT3LL

– Diem Association (@DiemAssociation) December 1, 2020

Commenting on the name change, Diem Association CEO Stuart Levy noted that in doing so, the company aims to win the favor of regulators:

β€œThe original name is associated with the original version of the project, which was not approved by the regulators. We changed our plan dramatically. “.

Indeed, the Libra project – now Diem – has undergone significant changes, facing opposition from regulators around the world. Instead of a “Facebook coin” backed by a basket of fiat currencies, Diem will be multiple stablecoins, each pegged to a specific local currency..

As previously reported by the BeInCrypto editors, Diem plans to launch one of the coins (tokenAs the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible, such as votes. Two … More, pegged to the dollar) in January 2021. However, this requires the approval of the Swiss Financial Markets Authority (FINMA). In September 2019, Diem applied for a FINMA payment system license.

The name change to Diem is the second rebranding within the project. Facebook renamed its Calibra wallet Novi in ​​May.

Regulators versus private stablecoins

Despite the name change, Diem does not cut ties with Facebook, Levy said. Facebook’s connection with the project remains one of the main reasons for the negative reaction of regulators.

Diem instead of Libra: will it help ...

In a recent article, the President of the European Central Bank, Christine Lagarde, highlighted the possible risks associated with payment projects of tech giants. Private stablecoins pose a greater threat to financial stability than Bitcoin (BTC), according to ECB chief.

Lagarde, like other members of the leading financial circles, believes that CBDC currencies are an effective measure against private stablecoins such as Diem. In addition to creating CBDCs, regulators are also proposing stricter rules for stablecoins..

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