According to the Sifted report, a London-based FinTech startup by the name of DIEM is contemplating legal action against Facebook’s Libra over the use of the Diem name. As reported earlier, Libra Association announced to rebrand itself as Diem Association this month. But the organization could be met with legal action from the London-based firm over copyright infringement. Facebook-backed Libra rebranded itself last week, saying that Diem “denotes a new day for the project.”
The fintech startup plans on filing a cease and desist with Facebook-backed organization.
The London-based startup is reportedly planning on filing a cease and desist with either Facebook or the Diem Association. The fintech startup DIEM uses an algorithm to price customers’ items. Customers can then sell things to DIEM and get cash. DIEM founder and CEO Geri Cupi said, “as a small startup, we are concerned that customer confusion resulting from Libra’s actions will significantly impact our growth.” Chris Adelsbach, a major investor in DIEM, said, “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,” he added.
Facebook-backed stablecoin will be launched earlier next year.
Facebook has faced a lot of regulatory criticism from lawmakers around the world since the social media giant announced the stablecoin project. As reported earlier, the long-awaited stablecoin Libra could finally see the light of day as soon as January 2021. The Swiss-based organization revealed that a trimmed down version of the stablecoin could be launched in January 2021. After facing scrutiny from global financial regulators for more than a year, Libra will finally launch in the form of a United States dollar-backed digital currency.
