Bitcoin or NFT on Facebook : The social network makes a radical choice

By: Bharggavi Ssayee

September 4, 2021 1:17 AM

In 2019, Facebook unveiled its crypto ambitions to the world by presenting the Libra project. Initially, Libra was to be a stablecoin indexed to a basket of currencies, accompanied by a crypto wallet. However, regulators around the world have taken a dim view of this initiative. Indeed, many believed that Facebook was trying to replace states and their central banks. The project has therefore revised its ambitions downwards. From now on, renamed Diem, Facebook's currency will be a stablecoin wisely backed by the dollar and accompanied by a wallet called Novi. If Facebook still dreams of being a crypto giant, it seems however that Bitcoin (BTC) will be excluded from the future Facebook wallet.

Unlike Diem, Novi, Facebook's wallet is ready

On August 24, David Marcus, head of Facebook Financial, provided an update on the progress of Diem and Novi. During his interview for Bloomberg, Marcus declared that the Diem teams "are preparing for the launch". It will be recalled that since the launch of the initiative in 2019, the Diem stablecoin project has been postponed on multiple occasions.

Marcus claims that Facebook is "not yet ready" for the launch of its stablecoin. However, that does not suit the business of David Marcus who is also responsible for the development of the portfolio of Facebook: Novi. According to him, the infrastructure of the stablecoin is not yet developed, while the Novi wallet is for its part fully ready. But the launch of the wallet, without the stablecoin that goes with it, is a “last resort” solution, because its initial uses would be drastically limited.

“But we are very determined and motivated to launch [Novi] with a stablecoin, on a network that allows us to make a real game-changer. "

Our Bloomberg colleagues pointed out that a significant segment of the population absolutely does not trust Facebook and that this could hinder the adoption of Novi.

“I don't think we deserve people's trust. I believe we deserve a chance to gain people's trust. I think we are in a good position to do so ”.

David Marcus responsible for Facebook Financial

However, gaining public trust on this specific topic could prove difficult for the web giant. Indeed, its reputation with the Western public, its core target, is deeply tarnished.

Bitcoin: a good investment, but not a medium of exchange

During his Bloomberg exchange, Marcus was asked about the possible integration of Bitcoin into Novi. At the moment, integrating Bitcoin is not part of Facebook's plan.

“I am also a long-time fan of bitcoin. But I don't see bitcoin as a transactional currency or a medium of exchange. I consider it to be an excellent decorrelated investment asset. But the problem is that the volatility of the asset itself does not make a good transactional currency. "

David Marcus responsible for Facebook Financial

While Facebook is not interested in Bitcoin, non-fungible tokens (NFTs) are said to be a focus of the team behind Novi. Marcus explained that Novi will allow storage of NFTs. He said it is important for creators and the public to be able to rent and sell NFTs, as these assets pave the way for new business models.

"It's too early to tackle our plan, but we are definitely looking at a number of ways to get involved in this area as we believe we are in a very good position to do so."

Marcus has not disclosed the reasons behind the further delay in the launch of Diem. Beyond Facebook's desire to create a low-cost payment system, therefore, we don't know much more about the web giant's true crypto ambitions. Only one thing is certain, Bitcoin is not part of the social network's crypto roadmap.