Monday, January 24

Facebook’s cryptocurrency has been denied registration request in Brazil

In 2019, the Libra Association, of which Facebook was a part, asked for trademark registration in Brazil, which ended up being denied by the INPI this Tuesday (21). That same year, Facebook shared its ambitious plans with the world to build its first stablecoin, a currency that would be backed by several fiat currencies around the world.

With the announcement, CEO Mark Zuckerberg was summoned by the parliament of the United States and Europe to provide clarification on the project.

Companies like PayPal and Mastercard even “board the Libra ship”, but jumped at the first sign of regulators, who put pressure on this cryptocurrency that could reach a base of billions of people. Central banks feared they would become obsolete, but politicians chased after the project and blocked the initiative.

In late 2020, Libra was renamed Diem, just as the Libra Association became the Diem Association. Made up of famous companies such as Uber, Spotify, Coinbase, among others, this cryptocurrency was expected to be released in 2021, but nothing happened but problems.

Trademark registration denied in Brazil

A process of more than two years that ran at the Institute of Industrial Intellectual Property (INPI), involving the former company Libra Association, came to an end this Tuesday.

According to the INPI, the company’s trademark registration application was denied for reproducing another similar trademark. In other words, if the application were approved, it could reproduce or imitate another’s brand, which could create confusion in the market.

Libra Association has a trademark application in Brazil denied by INPI / Reproduction

In theory, if the Libra Association still existed, it would have to try to register another name for its cryptocurrency.

In practice, the INPI denying this request does not change anything, as the Libra brand had already been abandoned by Facebook before, with its name now being Diem. However, the problems remain.

One of the project leaders abandoned Diem, how is it?

At the end of November 2021, just before the end of the year and thus presenting something new to the Diem project, David Marcus asked to leave the company Meta, ex-Facebook, after seven years of service.

In a Twitter announcement on Nov. 30, he said he had gone out to rest after intense work with Novi and, before that, Messenger. He was one of the most important leaders of the Libra Association since its founding.

Its departure may be related to the non-release of the Diem cryptocurrency in 2021, as this will be stored in the Novi wallet and had the supervision of Marcus.

Project co-founder Christian Catalini has said in recent months that Diem will be phased out when the Fed releases a digital version of the Dollar, indicating the currency would not last long. Even so, this Facebook project is one that never got off the ground and setbacks are increasingly serious.