Since the initial announcement of the Libra cryptocurrency, there has been nothing but trouble. Shortly after, members began jumping ship. There was also concern from governments around the world, including the US and EU. Without the partners, and with additional government scrutiny, getting Libra to market was becoming a challenge. As such, launch strategy changes were made.
But, the problem is that none of the real problems have been addressed. The biggest problem is that Libra is the brainchild of Facebook. Anything that Facebook touches is going to be heavily scrutinized by regulators and the public. Because the Libra brand is so associated with the company, the Libra Association has announced that it is rebranding to Diem Association, and the organization's stable coin will become Diem. The name change comes as the association has brought in a number of new and high-profile executives. The organization's CEO, Stuart Levey, said of the branding change,
We are excited to introduce Diem - a new name that signals the project's growing maturity and independence.
Levey also explains that the maturity growth has come from continued conversations with governments and regulators. The organization wants to ensure that it is working with and addressing the concerns of these countries, because as a stable coin, they hope to often work as a transfer mechanism between currencies, or between people in different countries. However, many countries have extremely strict rules over wire transfers, which some have claimed this system would fall under.
The rebranding also has a lot to do with separating the organization and currency from Facebook. The name Libra is well-known to be a Facebook brand, whether an independent association is in charge. However, with the changes within the organization and a more distinct delineation between Facebook and the association, a new name is a good idea. In fact, Facebook seems to agree, as the company's Libra wallet Calibri is becoming the Diem wallet Novi.