In this live seminar of the Global Group on FinTech Policy and Regulation, Philipp Paech discusses the end of Facebook’s Libra/Diem project after the assets of the Diem association were sold to Silvergate late January 2022.
It turns out that no-one really believe this is the end of the story. It is true that Facebook’s Novi wallet now allows holding NFTs primarily but this won’t be the end. The Metaverse, should it become a significant reality, needs a currency which is not Visa or Amex … i.e., a virtual currency.
Bitcoin and similar representatives of the coin universe are unsuitable for that purpose because of their volatility (one cannot hold them in balances without being exposed to market risk), hence … a ‘stable’ coin is needed. Facebook (sorry, Meta, of course), as a major proponent of the Metaverse, is therefore setting up the infrastructure with Novi, to be prepared for whatever suitable stable coin may come.
Setting up its OWN stable coin attracted too much regulatory scrutiny just because it’s Facebook (and rightly so), but who could stop Facebook integrating OTHER ISSUERS’ stable coins?
And here comes the test … will it be more like Paxos-type (regulated) or Tether-type (unregulated)? A question of significant impact – WHAT DO YOU THINK? Join the discussion in our group.
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