Facebook Exploring NFTs as Part of ‘Ready’ Digital Wallet

August 27, 2021, 10:45 AM AEST - 1 month ago

Facebook is considering allowing the company’s Novi digital wallet to support NFTs, according to David Marcus, the social media giant’s head of financial services. 

In a recent interview with Bloomberg, Marcus said Facebook is in a “good position” to enter the NFT market and allow users with related features to store their work. This would make the Novi wallet a multifunctional system besides just storing Diem, Facebook’s delayed token formerly known as Libra.

We’re definitely thinking about this. It’s really an area that is worth exploring, and one where we can have a positive impact for both creators and consumers.

David Marcus, head of financial services, Facebook

Novi Would Facilitate Cross-Border Payments

Facebook hopes Novi (which will go live as soon as Diem goes live) will make cross-border payments more efficient and reduce transaction costs.

Novi is Facebook’s blockchain-based wallet to support Diem transactions. Libra, Diem’s predecessor, was a coin meant to be backed by a mixed set of currencies and government debt, yet after several regulatory hurdles it was left as another stablecoin pegged to the US Dollar.

Speaking of regulatory uncertainty, the Reserve Bank of Australia, which has been dragging its feet regarding the study and launch of its own CBDC, remains unsure if the Diem will gain regulatory approval and be allowed to operate in Australia.

Facebook still suffers from the mistrust people have felt over the years regarding personal data security and privacy, thus their negative response to the company’s involvement in finance. Marcus has referred to this opposition as “un-American”, adding: “I don’t think we deserve people’s trust, I think we deserve a shot at earning people’s trust.”

Western Countries Are Losing the Race

Marcus notes that Western countries such as the US are lagging in technological and financial innovation compared to countries like China. “We are really falling behind at an alarming rate,” he says.

Four months ago, Facebook announced it was working on Pontem, an experimental network for Diem that will allow users to build decentralised applications (dApps), DeFi strategies, and other tools before Diem goes live.

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