Facebook hit with lawsuit threats over Libra rebrand plan.Facebook has been hit by threats of legal action as a result of its decision to rebrand the Libra stablecoin project as ‘Diem’ from the same name financial application.
Facebook revealed its intention to rebrand Libra on 1 December, hoping that the new name would help the rebranded project separate itself from the extreme regulatory pushback that Libra faced when it was announced last year.
Diem co-founder and prominent European fintech investor, Chris Adelsbach, told media outleft Sifted that while he was intimidated by the prospect of entering a legal battle with Facebook, he obtained legal advice instructing him to protect his brand “It wouldn’t have taken that much effort for Facebook to find out if there’s another Diem in financial services […] They obviously took the view that ‘we can just crush them, we’re Facebook.”
Diem CEO Geri Cupi said in a statement that his company was “flabbergasted” to learn of the Libra Association’s intention to rebrand itself as ‘Diem’, adding “As a small startup, we are concerned that customer confusion resulting from Libra’s actions will significantly impact our growth.”
Facebook’s stablecoin plans also seem to be set for a legal showdown with global regulators. The German finance minister, Olaf Scholz, described the project as “a wolf in sheep’s clothing” during a conference held on December 7 between G7 ministers and central bank heads.
Scholz emphasized that Germany’s lawmakers “will not accept its entry into the market” without Facebook demonstrating it has addressed the government’s regulatory concerns, adding “We must do everything possible to make sure the currency monopoly remains in the hands of states.”
[image: Glen Carrie]