It's seems the problems to Facebook's stablecoin may not end that soon, as the plans to rebrand the former name Libra to "Diem" could face a strong lawsuit from a company in Europe who already using the name Diem.
Facebook announced the plan to Libra project to Diem on December 1, 2020 mostly to resurge the image affected from scrutiny, withdraw from associates and gain more life into the market, but all planning could end up in court for intelectual property infringement, the lawsuit will be taken to the court by a small European country who claims owns a brand "Diem" and already is functional in the market also operating in the financial space.
The company feels that must protect the brand from the "giants" from Facebook, despite known the difference on the court fight due to "weight" of Facebook, the European start-up will open a lawsuit against the giant media in order to secure the brand.
The "Diem" CEO expressed his words about the matter:
"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."
It's clear that Facebook stablecoin project before entering the space will have to face one more challenge, the company have resources to research and found out that another company have the same name that they wanna use, oblivious they know that if the start-up goes to the court the giant media could win the case and the small company get a compensation to leave the brand in the "hands" of the giant social media new branch.
The two names can't be in market at same time, using "Diem" for two different business can cause confusion to customers, as the two firms are conducting financial activities, one of them must be out of service or using a different brand to stay in market.
Since it's announcement in June 2019, the facebook's stablecoin have been facing scrutiny, regulatory issues caused to delay the project and rebrand the project, but even with all the efforts the global stablecoin still facing huge forces against it. In Europe the project have been banned until the giant media company clarify how they plan to conduct their project without causing Financial problems in the region. This strong opposition could be seen in the words of the German finance Minister Olaf Scholz during the G7 conference of ministers:
"The Facebook project is a wolf in sheep's clothing"
This minister also states that Germany will make everything possible to don't let the Facebook project to be in the market in his country without the giant media don't explain in plain how they plan to address their business concerns, adding that "all means will be made possible to maintain their sovereign currency in the hand of the state" -all this concerns just show up that Facebook stablecoin isn't welcome in Germany and in most part of European countries.
Facebook plan to release the coin in the first semester of 2021, precisely in January and the stablecoin will be pegged to the US dollar, maybe later could extend their basket of currencies to more Fiat currencies. But with all the concerns surrounding the stablecoin it's possible to see the project get one more time postponed to a date to announce.
It's normal to get government threatened about this huge project, the media company owning the stablecoin have 2.7 billion active people using the services, this people are the target of the stablecoin, they could be customers and use Facebook platform to send, receive even borrow money using Facebook messenger, WhatsApp, Instagram in just a glimpse. Imagine a platform linked to a financial service to distribute financial solutions on the planet?! Who could even challenge them!
Banks are worried, governments are worried, particulars are worried, the service can be beneficial but taking in consideration all that Facebook have done in the past (leaking private information from users) how can this service ensure that financial information won't be exposed?!
Time will be the one who could tell nothing can be done for now just waiting for further details and development on the business that is already shaken governments and financial institutions.
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We need to see that in action as soon we can get this coin on the market.