Facebook Libra Association announced on Tuesday renaming itself to Diem. Diem is an independent group organized by Facebook to manage digital currencies. Other association members include Andreessen Horowitz, Coinbase, Spotify, Lyft and Uber, according to Reuters.
That move designed to reinforce its organizational independence as the ever-shrinking project seeks regulatory approval. According to CNBC, the Diem currency was designed to make it easier for people and businesses to securely send money across the world.
Unlike bitcoin and other cryptocurrencies, which can be hugely volatile and speculative, Diem will be backed by government currency. That means some coins offered by the group would serve as the equivalent value of a U.S. dollar or a Euro.
In addition, Diem transactions are recorded on a software ledger, known as blockchain, that confirms each transfer. The Diem blockchain will be managed by the founding members in the early stages but is supposed to evolve into a fully open system in the future.
A year and a half ago Facebook wanted to launch a cryptocurrency that was similar to Bitcoin, which it called Libra, after some companies such as Visa and Mastercard withdrew from the project, and given the concerns expressed by some banks and financial institutions, According to Financial Times report.
On other hand, Facebook ran a virtual currency named Credits, for about four years as a way to make payments on games played within Facebook. According to Mark Zuckerberg the Facebook's CEO, that having people use cryptocurrency would likely benefit Facebook by making advertising on the social network more desirable and, therefore, more expensive.
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