A week after Facebook rebranded Libra to Diem, the company could be facing a lawsuit from a London-based fintech application due to concerns relating to the same name. According to the reports, the London-based FinTech startup by the name of DIEM is contemplating judicial action over Facebook’s Libra to use the name “Diem.” The Diem Association, previously popular as Libra Association, is the governance body for the blockchain-based Diem Network. Facebook-supported Libra rebranded itself last week, stating that Diem signifies a novel day for the project.
Nevertheless, it appears that the officials behind the project have chosen the wrong name again. The London-based startup plans to file a cease with Facebook and the Diem Association. The fintech startup DIEM employs an algorithm to price consumer items. Consumers can then trade things to DIEM and receive cash. It is similar to Carvana, however, for a wider variety of items.
History repeats as Facebook faced a similar situation with Libra.
Geri Cupi, the founder and CEO of the DIEM, stated that they were flabbergasted when news burst out that Facebook’s Libra Association had adopted the Diem. It should be considered as Facebook’s second comparable situation. Quickly after declaring the initial Libra project last year, an Israeli insurance company named Libra posted a notice declaring that it holds all the rights to the “Libra” trademark.
Matters are quite complicated for Libra and Diem. In a single day, for instance, in October 2019, associate Mastercard, eBay, Stripe, and Visa abandoned the project. Various projects advocated regulatory matters. Facebook has faced in-depth analysis from lawmakers worldwide since the social media giant declared its stablecoin project. As reported earlier, the long-awaited stablecoin Libra could ultimately see the light of day as soon as January 2021. The Swiss-based organization announced that a limited version of the stablecoin could be launched in January 2021. After withstanding analysis from global financial regulators for over a year, Libra will decisively launch as a United States dollar-backed digital currency.
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