Facebook-backed cryptocurrency changes name in an effort to seek approval

A struggling cryptocurrency backed by Facebook has changed its name, in a bid to get it off the ground and approved by regulators.

Libra was launched in June 2019, backed by the social media giant back, to deliver an “inclusive and open” financial ecosystem.

However, after a number of backers pulled out of the scheme, including payment providers Visa and Paypal, and question being raised about privacy and financial stability, it has been rebranded as Diem.

The name change is part of a move to double down on its simpler, revamped structure, according to the chief executive of the Diem Association, Stuart Levey.

He said: “The original name was tied to an early iteration of the project that received a difficult reception from regulators. We have dramatically changed that proposition.”

Diem will now aim to launch a single dollar-backed digital coin, possibly as early as January, but it will first need approval from the Swiss markets watchdog.

Facebook, which changed the name of its payment unit from Calibra to Novi Financial in May, remains one of 27 backers of the project, with its head, David Marcus, one of five board members.