Mark Zuckerberg has another Solution to Bitcoin. It’s called Diem

Take two.

Photographer: Josh Edelson / AFP via Getty Images.

Last year backlash against Facebook Inc.’s proposed digital currency Libra would be the CEOs worst nightmare.

Governments and regulators linked arms to repel a perceived threat to financial sovereignty, financial stability and data privacy. The more Mark Zuckerberg tried to do it the peace of mind of politicians by discussing financial inclusion and innovation, the more he came across as a tobacco boss denying cigarettes is addictive. He even acknowledged the problem: “I find I’m not the ideal messenger for this.”

That has not stopped him. Given Zuckerberg’s tendency to proclaim half a heart apologies before going back to break things, it is no surprise that he is preparing for a second attempt to launch Libra next year.

There have been a few changes: Libra is now known as Diem – as in Carpe – and Stuart Levey leads his membership council, whose spells at US Treasury and HSBC Holdings Plc make him a combination of Beltway and banking. No more mention of awards for members in the a form of “investment tickets.”

Technically, Facebook is only one of Diem’s ā€‹ā€‹27 members, and Diem says it’s an independent organization – Facebook will provide an electronic wallet alongside it. But this project was created and funded by the Zuckerberg company, and the association’s six-seat board includes David Marcus, Facebook’s head of cryptocurrency efforts.

The biggest new concession for regulators is that Facebook will no longer create a single global currency. Instead of a synthetic Libra craft out of a basket of euros, dollars and yen – much like the International Monetary Fund Special Drawing Rights – Diem will include a number of single currency fixedcoins, pegged to each. Converting a dollar or euro into a digital Diem would be a one-to-one transaction, with little chance of wild volatility at the Bitcoin level or overnight disruption on fiat currency.

Facebook even proposes that central banks one day use the Diem blockchain to issue digital currencies, similar to China’s tests of digital yuan.