Just a week after Facebook announced plans to rename the Libra crypto currency to Diem, the social media firm faced several legal threats.
Diem is a financial application developed by fintech investor Chris Adelsbach and also shared the same name as planned by Facebook in the December 1 announcement.
The change of name Libra to Diem aims to avoid strict regulatory pressure after announcing plans for the establishment of a crypto currency last year and is expected to be officially launched in January 2021.
Adelsbach described the rebranding of Libra by Facebook as being done carelessly without any research on whether ‘Diem’ was used or not.
Diem CEO Geri Cupi explained that confusion in the future will affect the growth of their firm which is just beginning to step into the market.
Diem launched last October and managed to gain half a million followers. The financial platform allows its users to make online property transactions and offer debit cards.
In Monday's conference, G7 ministers and central bank chairman Olaf Scholz described the Facebook project as "a wolf in sheep's clothing."
Scholz also stressed that German law supervisors will not allow Libra to enter the country's market as long as Facebook does not address regulatory issues by the administration.
