Libra digital currency project was suddenly renamed Diem. The purpose of the rebranding is to distance itself from the social network Facebook and obtain organizational independence.

The king is dead, long live the king. Today, Libra cryptocurrency project launched by Facebook ceased to exist, but a new digital project called Diem was born. The rebranding is intended to show that the project has organizational independence from the social network. The Swiss association of companies developing the project was renamed from the Libra to Diem Association. The digital currency to be launched as part of the project will be named Diem Dollar. Earlier, media reported that stablecoins pegged to the US dollar and backed by bank deposits will be released as early as January 2021. The actual date of Libra launch will depend on the timing of its approval with the Swiss financial regulator. Several months ago, the Libra association developing the project claimed that it planned to issue several stablecoins pegged to different major currencies such as the US dollar, euro, pound sterling and so on.

“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 today.

Facebook announced plans to create Libra digital currency and Calibra wallet in June 2019. Facebook's ambitious plans quickly found support in the financial and IT industries but faced opposition from financial authorities and global regulators, fearing that such a tool threatens financial stability.

It is possible that the Libra rebranding is primarily associated with an attempt to distance itself from the negative connotations associated with unsuccessful attempts to launch Facebook's digital currency.

The Libra Association, registered in Switzerland, includes many technology companies such as Lyft, Spotify, Shopify. But a few months after its launch, due to harsh criticism of global regulators and pressure on Facebook from the US authorities, payment giants Visa, PayPal and others left the association.