Facebook’s digital wallet, Novi, has yet to launch and will coincide with the launch of Diem, the digital stablecoin that Facebook created in 2019, but the Menlo Park giant is still considering adding support for NFTs.
A stablecoin is a digital currency backed by a fiat currency such as the US dollar. The launch of Facebook’s stablecoin Diem will provide crypto trading opportunities and an environment in which NFTs are supported. Facebook Financial, also known as F2, is the internal group that develops the company’s Novi digital wallet. A digital wallet is a software service that allows you to pay and receive digital currencies. It facilitates trading cryptocurrencies and stores many other items such as gift cards and entertainment tickets.
The digital wallet and trading potential of its Facebook-branded stablecoin has raised regulatory concerns in the US Congress. Facebook was able to quickly turn the tables, as congressional pressure prompted the company to move from its initial cryptocurrency concept Libra to a new stablecoin called Diem.
Using a stablecoin backed by a fiat currency such as the US dollar can avoid the volatility of other cryptocurrencies such as Bitcoin and Ether. Diem Networks will register with the US Treasury and its Financial Crimes Network. Diem’s network will also provide access to peer-to-peer payments and the ability to purchase goods and services on Facebook’s platforms, although the platform will also be open to other wallets.
Facebook wants to use its platform to make it easier to create, buy and sell non-fungible tokens. A non-fungible token (NFT) is a piece of data or programming code stored on a digital ledger, called a blockchain. The blockchain is the ledger that keeps track of transactions and is certified through Proof of Work or Proof of Stake.
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