By
Tolu Ajiboye
April 23rd, 2024
The NFT move from Facebook will position the company to tag along with the evolution in the broader cryptocurrency ecosystem.
Novi Digital Wallet, an app designed by social Facebook Inc (NASDAQ: FB) to aid the movement of Diem, the social media giant’s cryptocurrency is on track to add support for Non-Fungible Token (NFT) features. The hint for the proposed backing for NFTs was given by David Marcus, the head of Facebook’s Novi division who spoke to Bloomberg TV on the possibilities of building products hinged towards digital collectibles.
“We’re definitely looking at a number of ways to get involved in the space because we think we’re in a really good position to do so,” Marcus said. “When you have a good crypto wallet like Novi will be, you also have to think about how to help consumers support NFTs,” added he.
The digital currency ecosystem has transformed in a remarkable way since the advent of Bitcoin (BTC) over a decade ago. Of the many expressions of use cases that have sprung up in the industry are NFTs, a way to register ownership of digital works of arts or collectibles on blockchain technology. For the past few years, the embrace of NFTs has grown organically, and are now going mainstream.
Multinational brands, crypto startups and blockchain networks are all lending support for NFTs as it is considered the future of data storage. The move from Facebook will position the company to tag along with the evolution in the broader cryptocurrency ecosystem. While the Facebook crypto boss said it is still early to speculate on the nature of products which will be associated with the NFTs, he noted that the company’s developers are on the case.
“We’re definitely thinking about this,” he said. “It’s really an area that is worth exploring and one where we can have a positive impact for both creators and consumers.”
Beyond the Facebook Novi NFT Plans, Marcus Shuns Bitcoin
While Marcus doubled down on the social media giant’s NFT efforts, he has expressed pessimism about the possibility of Bitcoin serving as a good medium of transaction. The reason he cited was based on the volatility of the digital currency.
“If you’re sending money around the world, you can’t have the value of the asset that you send decrease by 20% in a day or 10% in a day. That’s volatility that’s actually inappropriate for payments,” he said. “Maybe one day but not right now.”
Nonetheless, he claimed Bitcoin is a “really great” investment asset. The digital currency is up by 305.6% in the past year. By comparison, Gold is down by 7.68% to 1779.10 from the $1927.20 price level it was a year ago. Facebook has its own cryptocurrency project dubbed Diem, a global digital currency initiative design to upgrade existing payment options. The project has suffered immense regulatory pressures from authorities around the world and has stunted its growth.
The Novi Digital Wallet was initially designed for the Diem, and the struggle the project has faced thus far accounts for why the app has not yet been launched. However, as Marcus noted early, the wallet is now ready to come to the market.