Not only is Facebook's regulatory uncertainty about its possible Diem stablecoin protracted, but its official launch might not see the day. In fact, this was revealed by David Marcus, who heads the company's financial services unit.
In the latest blog post, Marcus revealed that Facebook's digital wallet Novi might well ditch all of the Diem stablecoin in support of fiat money if the watchdogs change their turf.
Regulators around the world have criticized Facebook's stablecoin since it was first introduced two years ago. While it started a much-needed conversation about the asset class, things have not really favored Diem's roadmap.
The team had shaped the Libra initiative to appear less threatening to politicians. Libra became Diem. The wallet designed for Libra was originally called Calibra, which was renamed Novi. Despite the changes, things are not looking very promising. The damage was exacerbated by the social media giant, Facebook's association with him.
Novi is regulated and ready, says Marcus
Marcus is still confident in Novi's success even as he remained short for the past two years. While affirming that "the change is overdue," the executive said that Novi is ready to go on the market. He continued adding,
“It is regulated and we are confident in our operational ability to exceed the high standards of compliance that will be required of us. We believe that it is unreasonable to delay the delivery of the benefits of cheaper, more interoperable and accessible digital payments. We will continue to persevere and show that we can be a trusted player in this industry, and one that is creating positive change by being in it. "
Facebook CFO wants to fight before turning to trust service
The regulatory challenges Facebook faces over the launch of the proposed stablecoin have been overwhelming. Despite maintaining their commitment to Novi and Diem, Marcus suggested that they could start offering fiat services instead of stablecoin. His exact words were,
“Let me be clear, if we only offered fiat money in Novi, it would bring a lot of value to people. We could offer domestic and cross-border payments, and it would benefit Facebook as we would be creating a significant number of wallet accounts. . This, in turn, would allow us to build a strong merchant services business by charging merchants competitive fees to accept payments from Novi's clients. So why not do that and leave everything up to date?
Before Marcus jumps off the boat, he plans to put up a fight because of his "firm" belief that "if there is ever a chance to create an open and interoperable protocol for money on the internet and really change the game for people and businesses of all the whole world, it is now. He also stated that he does not want to waste this shot.