Facebook seems to ramp up its efforts to create its digital wallet. After the news that Facebook may launch its “Libra” cryptocurrency by January 2021, Facebook changes the Libra Association’s name to Diem.
The Libra Association is a project co-founded by Facebook in June 2019. It’s the controlling body for a project of what’s originally known as the Calibra wallet using the Libra cryptocurrency. Last 26 May 2020, Facebook introduced the Novi digital wallet to replace Calibra. On 01 December 2020, the Financial Times published an article on the possibility of launching Libra cryptocurrency.
The Libra Association’s new name “Diem” was a move to reinforce its autonomy from Facebook. It wanted to highlight that “Diem” will have full control over the Novi digital wallet and Libra cryptocurrency. Diem Networks also announces the appointment of a new stellar group of officers as follow:
- James Emmett as CEO and Managing Director
- Sterling Daines as Chief Compliance Officer
- Ian Jenkins as Chief Financial and Risk Officer
- Saumya Bhavsar as General Counsel
With this top team now in place, Diem will focus on operational and technological readiness before the launch.
Facebook changes the Libra Association’s name to Diem effective 01 December 2020.
Implications for Marketers:
As Facebook changes the name of Libra Association to Diem, it makes it clear to the public that they won’t have any control over the Libra cryptocurrency. The platform sparked controversies in the past as it co-founded Calibra. Mastercard, PayPal, and Visa have even pulled out because of public scrutiny. The launch of Libra through Diem can be a better option for e-commerce. It’s a cheaper and easier payment system. That’s why marketers should prepare to link their Facebook Shops to Libra’s wallet – Novi.