In Facebook’s Digital Wallet, There is Room for NFTs, but Not for Bitcoin

As cryptocurrencies become increasingly popular, it is no surprise that more and more large companies are integrating them into their operations, including Facebook. While it is already known that Facebook is working on launching its own digital wallet, David Marcus, head of Facebook’s fintech division and a board member of Diem, emphasized that the company is considering introducing NFT features into its digital wallet. More specifically, their wallet could be used to hold NFTs.

NFTs, or non-fungible tokens, represent digital assets that include unique tangible and intangible items such as collectible sports cards, virtual real estate, digital sneakers, digital memorabilia, animations, and images. They are encoded on the blockchain, a platform that supports cryptocurrencies, and carry a digital watermark that signifies unique ownership rights.

Marcus explained that Facebook is now in a good position to engage in the world of cryptocurrencies, aided by its internal team working towards the imminent launch of the digital wallet ‘Novi’, and he highlighted that digital assets are definitely becoming part of the company’s financial plan, as reported by Business Insider.

– When you have a good crypto wallet, like ‘Novi’ will be, you need to think about how to help consumers support NFTs – Marcus explained to Bloomberg Television.

Bitcoin Does Not Interest Facebook

However, while they are pleased with the introduction of features related to non-fungible tokens, they are skeptical about using bitcoin for transactions, Business Insider reports. Marcus explained that he does not view the leading cryptocurrency as a good medium of exchange because he considers it too unstable.

– If you are sending money around the world, you cannot afford for its value to drop by 20 percent in one day and by 10 percent the next. That is instability that is actually unsuitable for payments – Marcus explained, adding that this does not mean they will not reconsider their plans regarding bitcoin in the future.

The West is Lagging in Digital Payments

Meanwhile, Facebook’s digital wallet is reportedly already ready, but the company is still waiting to launch it alongside Diem, the digital currency for which Marcus is a co-founder. Nevertheless, there is currently consideration for Facebook to launch ‘Novi’ without Diem, given that the launch of Diem has been delayed due to concerns from regulatory authorities regarding data privacy and potential money laundering issues.

The plans are for Diem to offer a so-called stablecoin backed by the US dollar, but it is not known when it will start being used.

Additionally, Marcus believes that without more innovations in payment technology, Western countries like the US will struggle to keep pace with China in adapting to a world where digital payments are dominant.

– We are really falling behind, and that is concerning – Marcus added.

Although Marcus emphasized that it is still too early for details about Facebook’s plans regarding NFTs, the company’s developers are working on the idea of this interesting collaboration.

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