It’s been a long time that we have heard any word regarding Facebook’s development of its own stablecoin. Although silent for a while, the tech juggernaut has been working on its Novi Digital Wallet.
Facebook’s head for Blockchain and FinTech division David Marcus briefs us about the developments in line and how far they have come. Marcus touches down upon the latest developments on stablecoins and the regulatory actions surrounding them.
Marcus refers to the current payments system being fragmented and how there have been several roadblocks in front of some promising innovations in the digital payments industry.
Facebook has been working on its Novi Digital Wallet, as Marcus notes that it has secured licenses from almost all major states in the U.S. He also notes that Facebook has managed to engage in constructive consultations with financial policymakers across the world. Marcus writes:
In the US, we have secured licenses or approvals for Novi in nearly every state, and we will not launch anywhere we have not yet received such clearances. The Diem Association has become an independent entity, conducting its own 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.
Facebook’s Novi Wallet is “an interoperable digital wallet that will enable people, and eventually small businesses, to move money around domestically and internationally in a quick and affordable way”.
America Should Take A Lead in Improving Digital Payments
Facebook’s David Marcus believes that America can play a lead role in working on digital payments infrastructure. He cites the example of how competing nations like China are leading the way into it.
Considering Facebook’s global reach, Marcus notes that Novi will be easily able to reach millions of people worldwide. He also backs the development with stablecoins and how Novi can play a crucial role instead of just supporting the fiat currency.
Furthermore, the notes that Facebook shall be doing all regulatory diligence with opening Novi accounts. Thus, while onboarding customers on Novi, they will have to undergo the mandatory KYC process. Marcus further added:
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. We trust that people will prefer a service that is cost free and more convenient to ones that are significantly more expensive and not consumer-centric.
Marcus said that Novi is all set to enter the market. He added that Facebook is confident of its operational abilities to meet high compliance standards.