One big competitor could enter the digital wallet market: Facebook. The company may be close to launching a solution capable of storing cryptocurrencies, according to David Marcus, head of the company’s encryption unit. The company is almost ready to make a solution called Novi available by the end of 2021, linked to the Diem currency.
In an interview with The Information, as reproduced on the TechXplore website, the executive says that the platform intends to present the money storage service along with the new digital currency in development.
Facebook wallet may arrive in 2021 (Image: Divulgação/Novi)
Diem would be a cryptocurrency linked to the dollar, a technique known as stablecoin, and would have Novi as its main dissemination ally. Both are different and independent things, but delivering them together can be an effective company strategy to attract more attention and give the asset an initial boost to take off.
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Some companies often make digital currencies available in just a single channel to centralize sales and better control price fluctuations. This may be Facebook’s strategy to popularize its wallet and thus force the interested party to install it on PCs or cell phones.
Diem is the Facebook currency that can be released together with the wallet (Image: Reproduction/Diem Market)
In 2019, Facebook announced developing a cryptocurrency called Libra. Since then, the project has faced regulatory resistance due to concerns about safety and reliability. In December 2020, Libra changed its name to Diem and transferred its operations from Switzerland to the United States, as part of a “strategic change”.
With the crypto boom in 2021, the platform may have reinforced its desire to introduce a more stable currency used to transact more specific things. It remains to be seen what the proposed “footprint” will be and what guarantees Facebook intends to offer to the formal market, after all there is no lack of more profitable — and safe — options for investment.
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