Earlier in the week, social media giant Facebook announced that it’s cryptocurrency wallet Novi is ready to be launched.
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It’s tentacles in social media terrain cuts across the imaging app Instagram, through Text messaging app WhatsApp to Facebook the giant multimedia social platform.
According to press release on Facebook website, it has a total of 2.8 billion active users from January 2021 to August 2021. Instagram recorded over a billion active users while WhatsApp has a total 2 billion monthly active users.
The entrance of Facebook into cryptocurrency service providing platform will spell breakthrough adoptions for cryptocurrency, if billions of it’s users is factored into consideration. Facebook is not new to creating payment platforms. It’s Facebook Pay is used for advert payment on the platform. It is expected that the new digital wallet Novi will be used to process Facebook retail payments.
David Marcus, chief of Facebook’s financial services division, in a blog post Wednesday said Novi could play an instrumental role in fixing the global payments system that he said is, among other things, too slow and too costly.
“Change is long overdue. It’ll happen one way or another. Novi is ready to come to market,” wrote Marcus, a former Paypal president and co-founder of the Diem Association. “We feel that it’s unreasonable to delay delivering the benefits of cheaper, interoperable, more accessible digital payments.”
Diem, which was first spearheaded by Facebook under the Libra name, is a blockchain-based payment system that has faced a number of roadblocks. Regulatory concerns over Facebook’s data privacy and potential money laundering issues have contributed to delays for the program that was meant to launch in early 2021.
Diem was originally meant to be backed by a wide mix of currencies and government debt but it’s now meant to launch as a single coin backed by the US dollar.
He said the Diem Association is engaged in dialogue with US and global regulators. “It has addressed every legitimate concern that was raised on its journey to design and build a high quality stablecoin with extensive consumer protections, and a highly compliant payments network to support it – all within the US regulatory perimeter.”
Novi has secured licenses or approvals in nearly every US state and it won’t launch any place where it has yet to receive clearances, said Marcus.