Facebook plans to combine its Novi wallet with the Diem stablecoin to leverage NFTs

Facebook is planning to leverage its Novi wallet to help support users who are looking to enter the NFT niche. 

In an article published on Bloomberg on Tuesday, David Marcus, the head of Facebook Financial, who are developing the Novi wallet, said that Facebook is looking at ways to get into the NFT space.  

He believes that Facebook is in a very good position to take advantage of the current trend in NFTs. Marcus said that the Facebook digital wallet is “ready now”, but that they are waiting to launch in tandem with the Facebook-backed Diem digital currency. 

Diem is a kind of successor to the original Facebook Libra project, co-founded by Marcus back in 2019. However, due to much pressure from regulators and lawmakers the project was abandoned.  

The present Diem project is backed by Facebook along with quite a variety of other institutions. The Diem is a stablecoin backed by the US dollar and it is supposed to be launched at some point later this year. However, just like was the case with Libra, it is still very much under scrutiny from regulators. 

Perhaps in order to pacify these regulators, the Diem organisation did announce that it was ready to withdraw the Diem stablecoin as soon as a digital dollar, in the form of a central bank digital currency (CBDC), was rolled out. 

At least for the present, the Diem will be an integral part of the Novi wallet for the payments side of things. However, should the regulatory pressure on the Diem stablecoin become too fierce to allow it to launch, then as a “last resort”, Novi could be launched on its own. 

Marcus said that it was still early to be detailing all Facebook’s plans for NFT services, but the company will be looking at getting involved in all the various facets of the sector. 

NFTs are booming currently, and digital collectibles such as graphics, music, video, and virtual land are being sold at sometimes astronomical prices. The NFT (non-fungible token) provides a unique digital hash that is immutably stamped on the blockchain, thereby providing indubitable proof of ownership. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.