Facebook Wants A ‘Fair Shot’ At Crypto Payments

In a recently published Medium article entitled “Good stablecoins, a protocol for money, and digital wallets: the formula to fix our broken payment system”, David Marcus, Facebook’s crypto pioneer shared his views and ideas. He talked about economic inequality, regulatory issues, and stablecoin solution suggested by Novi. Marcus has spent the last few years creating Diem’s crypto wallet Novi. Novi is a compatible cryptocurrency wallet. They have specially designed it to integrate with the Diem payment system. Through it, people and companies can easily transfer money around the world.

This digital wallet has revolutionized the old financial payments system conclusively. In the article, Marcus talks about 1.7 billion unbanked people worldwide. He also talks about 62 million Americans. They say they are not maximizing their financial potential with their current banking provider. These are the main reasons for innovation in this area. Marcus remained confused by the lack of urgency on the part of regulators and legislators in cryptocurrency adoption and the seismic potential of the blockchain. He says:

“Here at home in America, … our payments infrastructure is arguably the worst of any developed country in the world, and increasingly falling behind, while China is moving with determination and haste to build an infrastructure that will make the digital yuan a challenger to the dollar as the world’s reserve currency.”

Last year, Ripple’s executive chairman expressed a similar view. He wrote that the United States of America is losing the “tech cold war” with China so that it can control the “next-gen financial system”. In the year 2019, Diem (rebranded from Libra), proposed creating its own cryptocurrency for people to use on Facebook-owned platforms such as Instagram, WhatsApp, and Messenger and potentially competing with the sovereignty of traditional fiat currencies such as the US dollar.

Statements from Facebook’s David Marcus

Such a strong approach resulted in a sparked outrage. This is why the team had to quickly revisit their business model further for consideration. These approaches faced a lot of public back and forth over all these years. But now, Diem and Novi are two unique products. The firms will launch them this year. Following Marcus’s vision, Novi remains committed to following the stablecoin approach. It believes that now is the optimal time to merge an “underlying payments network that’s cheaper, faster, safer, interoperable and programmable” with a well-organized crypto stablecoin.

Marcus stated, “We’re a challenger in the payments industry, and we will offer free person-to-person payments domestically and internationally for people using the Novi wallet”. Furthermore, Marcus also talks about the fact that Novi wallet should support non-fungible tokens or NFTs, noting that smart contracts will soon replace traditional contracts and titles. Novi is said to have “engaged in constructive consultations” with regulators and legislators worldwide, applying for regulatory approvals or approvals in most US states.

Marcus has written twice that there are well-documented trust issues that surround Facebook’s data records. Still, Novi should have a “fair shot” in its financial ambition. He says that people should not suppress innovation, rather they should accept them. People noticed such language in his “benefit of the doubt” plea at the end of last year. In his final thoughts, Marcus shared his fervent conviction. He said that it would be “absurd to delay” the launch of the Novi wallet. However, he never gave a specific date.

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