Facebook Libra changes name to Diem Association

Washington: Facing regulatory backlash worldwide, the Libra Association, which manages Facebook's cryptocurrency project, has decided to change its name to Diem Association in a bid to reinforce its organisational independence.

The Diem Association (diem means day in Latin) will have its subsidiary called Diem Networks to serve as the payment system operator.

In making the name change, the organisation said its goal is still to build a safe, secure, and compliant payment system.

"The Diem Association will continue to pursue a mission of building a safe, secure and compliant payment system that empowers people and businesses around the world," the organisation said in a statement late on Tuesday.

The move comes at a time when the Libra Association is set to launch a single coin backed by one dollar as early as January, the media reported last week.

The Libra Association would launch other currencies and a "digital composite" of all of its coins at a later date.

"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," said Stuart Levey, the Diem Association's CEO.

As part of the effort to achieve regulatory approval and progress toward launch, Diem has hired professionals to help lead the Association and Diem Networks, the subsidiary that is the regulated payment system operator.

This includes the appointment of Dahlia Malkhi as the Association's Chief Technology Officer, Christy Clark as Chief of Staff, Steve Bunnell as Chief Legal Officer, and Kiran Raj as Executive Vice President for Growth and Innovation and Deputy General Counsel.

Facebook and 20 partner organisations formally joined the digital currency project during a meeting in Geneva in October last year.

In a move to win regulators' hearts, The association in April announced that its cryptocurrency will offer stable coins backed by just one nation's currency, meaning some coins offered would serve as the equivalent value of a dollar or a Euro.

Last year, several heavyweights pulled out of the Libra project, like PayPal, Mastercard, Visa, Mercado Pago, eBay, Stripe and Booking Holdings and Vodafone over privacy concerns.