Facebook Launches Digital Wallet But Without Diem
Facebook isn’t giving up on its plan to use blockchain technology to break into the finance industry. Following the failure of its Libra project, Facebook announced cooperation with Coinbase to launch its cryptocurrency wallet, Novi.
The launch is still in the early stages of testing. According to David Marcus, the head of Novi, Facebook is starting a trial of Novi available to a small group of users to assess the service’s robustness.
That’s all there is to it. Diem, the stablecoin that sparked so much controversy when Facebook first introduced it two years ago, isn’t part of the pilot, so it’s unclear what Facebook’s bigger payments and the crypto goal are.
Why did Facebook make the switch?
Mark Zuckerberg, Facebook CEO…er….Meta CEO wrote in his founder’s letter that the umbrella brand was formed because the Facebook brand had become too scandal-plagued, or to put it another way, too confining. “Our brand is currently so closely associated with one product that it can’t possible reflect all we do now, let alone in the future. I’d like to see us become known as a metaverse firm over time, and I’d like to base our efforts and identity on that goal “penned by Mark Zuckerberg.
Facebook’s Novi wallet will dominate Meta’s crypto future.
Despite the senatorial rebuke, David Marcus, the executive in charge of Meta’s Novi digital wallet project, sent out a series of startling tweets on Novi’s role in the future. Marcus said that we’re consolidating our payments and financial services operation and products under the Novi brand today, with Facebook becoming Meta. We’ve been facilitating payments across our apps for over a decade, and in the last 12 months, we’ve processed over $100 billion across all of our products… As a result, all present and future payments and financial services experiences will be unified under the Novi brand over time.
To be clear, Meta seeks to provide an immersive online experience by having a single digital wallet that appears to work with all digital assets, including cryptocurrency. This is a huge deal, but it’s getting a lot of attention. Is it possible that all currencies must be converted to Diem via the Novi wallet before purchases in the Metaverse may be made? What will politicians do in response? Will politicians be able to regulate the Metaverse?
While there are no quick solutions to these and other problems, Meta appears to have found its long-awaited answer, as well as a quiet entrance, into the digital crypto realm. That could be Meta’s most significant and long-lasting shift, for better or worse.