Association’s New Clothes for ‘Appropriate Autonomy’

Source: Adobe / Maksym Povozniuk

The Facebook-supported Libra Association announced the change of his name to the The club – a step which, together with new hires, gives the association more “autonomy”.

In a press release emailed, the organization wrote:

“The Libra Association announces the adoption of a new name and executive recruitment, strengthening its organizational independence on the way to regulatory approval for launch.”

The new name is Diem (Latin for “day”). The association says “marks a new day for the project” and “signals the growing maturity and independence of the project”.

Stuart Levey, CEO of the Diem Association, was quoted as saying that the panel is committed to providing “a simple platform for fintech innovation to thrive” and in a way that “promotes financial inclusion”.

However, the association stressed that it will only continue its launch after receiving regulatory approval, including a payment systems license for its operating subsidiary from the Swiss Financial Market Authority (FINMA).

The association added

“The licensing process has not yet been completed and the operational subsidiary of the association is in an active and productive dialogue with FINMA.”

Diem wrote that Diem will form a group of senior executives who will lead the association to obtain regulatory approval and progress on rollout Diem Networks, the regulated subsidiary of the regulated payment system. This group and the Diem Networks Executive Committee, along with existing employees, “are a critical step for Diem to operate with adequate autonomy,” added Levey.

Last week, reported that the association was preparing to launch as a single coin with 1: 1 reserve for USD reserves as early as January 2021.

This is another step the association has taken, apparently to distance itself from its troubled past, which has been scrutinized by various regulators since Libra’s disclosure in June 2019 – the control of its currency basket that the association would have over it including the possible destabilization of monetary policy and the connection between Libra and Facebook.

This recording contained two hearings prior to US House Financial Services Committee including in summer 2019.

Since then, Libra, now Diem, has apparently attempted to “divorce itself” from Facebook and potentially negative associations that may have caused previous regulatory issues. Shortly after regulatory hurdles surfaced and a number of original member firms departed, Diem gradually began making changes to his original plans to apparently get regulators under control.

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