Facebook's Crypto Wallet Is Now Available for Purchase

For years, Facebook has been researching and developing cryptocurrency. It is now preparing to launch its stablecoin wallet. In June of this year, Facebook unveiled its crypto project for the first time. It switched from worldwide currency ideas to a stablecoin for the United States last year.

It is nearing the completion of its wallet.

Novi, Facebook's long-awaited cryptocurrency wallet, "is ready to enter to market," according to co-creator David Marcus of Facebook Diem. The announcement was made at the end of a lengthy blog post, rather than with the fanfare that accompanied Facebook's initial announcement in June 2019 that it was developing a digital currency backed by a basket of fiat currencies and managed by some of the world's most powerful financial and technology figures.

Novi (formerly Calibra) is hobbling into a cryptocurrency market that is vastly different from that of two years ago. Libra, a digital currency delivered via the Calibra wallet, was the start of Facebook's project. The idea was to create a new global currency, not just a stablecoin that mirrored the price of the dollar. Though the asset was initially to be governed by Libra Association members, it was intended to decentralize over time, similar to other cryptocurrency projects.

The vast majority of this is no longer accurate. Libra changed direction in April 2020, with the goal of becoming a typical stablecoin. It would be a more regulated version of USDC or Tether, rather than a new Bitcoin. Calibra would function as a wallet for stablecoins. Even though it's connected with the world's largest social network, it's a stablecoin wallet.

Calibra's name was changed to Novi the next month. Diem was adopted as the new name for the Libra Association in December. The initiative has had a slew of departures, including Kevin Weil, a co-founder. After Facebook faced strong inquiries from authorities, eBay, Mastercard, Stripe, and Visa all pulled out of the association on the same day in October 2019. Nonetheless, big names like venture capital company Andreessen Horowitz, cryptocurrency exchange Coinbase, and ride-hailing apps Uber and Lyft are still around.

Tether was the top stablecoin with a market cap of $3.5 billion when Facebook first released Libra Coin in June 2019, after speculations that it was working on it for several years. It is still the most valuable cryptocurrency, but according to CoinMarketCap, its market capitalization is $64 billion. With $27.5 billion, Diem Association member Coinbase's USDC stablecoin comes in second.

Facebook has already defeated more well-known competitors, such as MySpace and Friendster, to become the world's most popular social network. When it comes to innovators, it has a leg up because it can either purchase them, like it did with Instagram and WhatsApp, or incorporate similar capabilities into its own network, as it is with cryptocurrencies.

So Novi and Diem can still play a role. Today, Marcus outlined the strategy.

"We're a disruptor in the payments business," he added, "and we'll offer free domestic and international person-to-person payments to those who use the Novi wallet." "We believe that customers will prefer a free and convenient service over one that is much more expensive and not focused on the customer."

Perhaps, but if Marcus and Facebook have learnt anything about cryptocurrencies in the last two years, it is that it isn't about trust. It all boils down to a lack of faith.


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