Facebook’s mission is to bring the world closer together. Increasingly, it serves not only as a platform to share messages with friends and family, but also as a platform for people’s financial lives.
David Marks, who runs the company’s financial services unit, said Facebook has enabled 100 billion in payments over the past year. But this is just the beginning of the social network’s ambitions in the finance industry, Mr. Marx wrote in a new memo about the country’s “broken” payment system, the Dellbook newsletter reported.
At the heart of Facebook’s payments is Novi, a digital wallet aimed at helping users move money around the world faster and cheaper (in many cases free). The company had planned to link it to a “stable coin” cryptocurrency called Libra, but it was stopped during a regulatory scrutiny, and is now overseeing an external non-profit overseeing the scaleback project, called a dam. Makes a for-profit group that seeks the necessary government approval.
Mentioning some of the failures of Facebook in trying to get into crypto. The payments industry, Mr. Marcus Techdev, describes as the subject of a worldwide mistrust inquiry, as an underdog.
“Facebook is facing unfair resistance in the financial industry,” he wrote. “I’ve heard a lot of talk about how this proposal would be so good if Facebook wasn’t the only one involved,” he said. “I understand and accept the need for additional scrutiny because of my scale.”
But Mr Marx described Facebook as a “challenge in the payments industry” and said there were no specific plans yet to monetize the use of Novi Wallet, which would not personally charge for payments. , Even across borders.
He added that allowing consumers to pay in dollars, euros and other fiat currencies through Novi Wallet would be very costly.
“So why not just do it and call it a day?” He wrote. “Well, we can.” But before deciding on that, he doesn’t want to “waste our shot” to include stable coins in an “open, collaborative protocol” for online payments. “To make the most of the impact, building a closed system using Fiat was not cutting it,” he said in the memo.
Crypto advocates say that blockchain technology allows products that eliminate middlemen, credit checks and fees, and that allows people outside of traditional financial services to transact anytime, anywhere. Mr Marks believes that with a well-designed stable coin fiat currency that supports one-on-one cash deposits, it can provide strong protection to consumers. It will also provide faster access to funds. Traditional bank accounts
In practice, regulators are wary of stable coins. An investigation by the New York Attorney General’s Office into the famous Stable Coin Teacher found that the company had dug in without tokens to back him up. In recent weeks, cryptocurrencies have been raised by Secretary of the Treasury Janet L. Yellen. Gary Jensler, chair of the Securities and Exchange Commission, and Senator Elizabeth Warren, a Democrat from Massachusetts.
Mr Marx is trying to allay those concerns. “We will stand firm and show that we can be a reliable player in this industry,” he wrote.
Facebook’s digital wallet is ready to hit the market, Mr. Marks said, and “we deserve a proper shot.” Regulators have yet to be convinced that Facebook will have a hard time getting to this point.