Facebook was one of the first platforms that excelled in connecting people and allowing them to interact despite the distance between them, and now the tech behemoth is about to embark on a new project. The multinational company has been in the market for a long time and has seen the internet’s conventions change over time, as well as the significant influence crypto and digital currency have had. As a result, Facebook has been attempting to create its digital wallet, Novi, for quite some time.
David Marcus, the head of Facebook’s financial services division, posted on Medium that Novi might help solve the global payments system. He said that it is time to change our broken payments infrastructure because existing methods are expensive, slow, and not interlinked. He cited 1.7 billion unbanked people worldwide, including 62 million Americans, who are ‘stuck in the cash economy’ under the current system. Facebook is already “an actor” in the financial sector, Marcus said. According to him, Facebook Payments have processed over $100 billion in payments in the last four quarters and is adopted in over 160 countries for payments in 55 currencies.
Facebook’s digital wallet will also include a twist. The tech titan intends to use it to manage both fiat and cryptocurrency, and it would launch in partnership with a stable coin named “Libra”, but that plan fell through because of Facebook’s frequent court appearances and attempts to clear up all the claims leveled against them. Facebook is a threat because Novi will not only be available in fiat and digital currency but it will also be exempted from tax cuts. It will guarantee that taxation is kept to a bare minimum, and in most circumstances, will be free of charge for both domestic and international money transactions, and this, they claim, will transform the way the digital currency world operates. As a result, they pose a danger to their competitors because, following their launch, many users will choose them as a mode of transfer.
Diem, formerly known as Libra, is a cryptocurrency and blockchain-based payment system launched by Facebook in June 2019. Following widespread criticism from worldwide authorities and industry participants, the internet giant drastically cut back its objectives and renamed the project “Diem.” The Diem Association is a non-profit organization in charge of Diem stablecoin’s development. Stablecoins are digital currencies that are related to a fiat currency, or one issued by a central bank. Novi allows users to deposit money into their wallets, which is later transformed into Diem digital currency and transferred to others throughout the world.
The Novi Wallet, according to Marcus, will allow users and small businesses to transfer money quickly and affordably, both domestically and globally. He asserted the wallet is ready to go to market because the initiative has already received all the permits and approvals from practically every state in the United States.
Written by: Mishaal Muzaffar
Repoter: Imaaz Nadeem