The head of the blockchain division at Facebook, David Marcus, writes that Novi wallet for the Diem (formerly Libra) payment system is ready to go to market. He does not name a possible launch date.
Markus wrote in an article on Medium that there are many serious flaws in international payment systems. We are talking about their slow operation, high transaction fees and lack of interaction between them. Banking services are still unavailable for 1.7 billion people, and among these people there are 62 million Americans.
Markus believes that without the ability to make payments, people are “overboard” of the existing economy. The Calibra digital wallet, renamed Novi last year, could solve this problem by allowing individuals and businesses to transfer money quickly domestically and internationally, Markus said. However, this will be possible through the use of stablecoins rather than government-issued paper money, Markus said.
“An open and interoperable protocol for online payments could be a game changer in the financial industry around the world. Stablecoins on their own do not solve any problems. To unleash their potential, they need to integrate with an underlying programmable payment network that is cheaper, faster, more secure, and compatible with other systems. Today’s payment systems have undergone only minor changes since the introduction of the first credit cards more than six decades ago, ”said Markus.
He added that not all stablecoins are created equal. Markus defined “a well-designed stablecoin”. It can be considered a stable cryptocurrency, which is always backed by the state currency in a 1: 1 ratio and short-term liabilities. Even when it comes to combating money laundering, terrorist financing, sanctions evasion and taxation, stablecoins can improve regulatory compliance. And when using a special wallet, the potential of stablecoins can be effectively used to detect illegal transactions and suppress financial crimes.
Markus said the Diem Association is in talks with regulators and politicians around the world. The Diem Association has already licensed the Novi wallet for Diem in almost every state in the US. The association announced that it will not launch the wallet in any jurisdiction without the required permission.
“We have played a pivotal role in communication by allowing people to communicate freely and without restrictions. Previously, this privilege was only available to wealthy people, when international calls cost a dollar per minute and text messages were sent for $ 0.25. It is time for a change in digital payments to lift finance out of decades of stagnation, ”wrote Markus.
At the beginning of the year, it became known that more than 50 million transactions were made on the Diem stablecoin test network. Later, the Diem team said it was ready to partner with central banks and provide them with the infrastructure to launch government digital currencies.
The question remains, which digital currency or token will become the main currency in the Facebook payment system. For this purpose, first the own stablecoin Libra was considered, then a basket of stablecoins, and, finally, the use of existing stablecoins. But the final choice has not yet been made.
