Facebook might include NFT features alongside Digital Wallet. Facebook is considering building products and features related to nonfungible tokens, or NFTs, the digital assets that have taken off with the rise of blockchain technology.
Facebook is reportedly thinking about including NFT features in its digital wallet, according to David Marcus, an executive. Marcus said that Facebook felt like it was in a good position to get involved in a number of ways.
The Facebook executive also hinted that the Novi wallet would allow users to hold and transact NFTs, without revealing specific details. The wallet has been built on a restricted blockchain network developed by Facebook’s team.
Novi is Facebook’s own crypto wallet that will allow individuals and companies to transfer funds domestically and internationally. This wallet could also be used to hold nonfungible tokens (NFTs) as part of Facebook’s interest in expanding its financial products.
After a few years spent on development, Marcus revealed that Facebook’s Novi crypto wallet is finally ready to launch. However, the firm has reportedly put the official launch on hold until its cryptocurrency project Diem received approval from regulators.
In December 2020, the company rebranded its cryptocurrency project to Diem from “Libra” with the aim of showing the project’s “growing maturity and independence.”
Facebook had originally designed its wallet for Libra in 2019. It was envisioned as a dollar pegged digital asset that could be exchanged across the Internet, similar to other tokens like USDC and USDT. Libra received a lot of pushback from regulators worldwide, who expressed concerns over its misuse by nefarious entities.
At this time, it’s unclear when the two will launch. Marcus told Bloomberg that the Novi wallet would be launched without Diem “as a last resort,” but when paired together, both will be necessary to change the way people make payments going forward.
Facebook might include NFT because of its growing popularity
NFT’s are booming in cryptocurrency space at the moment. This niche has led to established projects launching their own NFTs, as well as celebrities and companies from outside the space. It has quickly taken over DeFi as the hottest property on the market, and there are no signs of it subsiding.
Considering Facebook’s brand value and capacity for exposure, the NFT market could grow even more popular. Brands like Formula 1, Major League Baseball, and the NBA have all adopted NFTs. Celebrities and artists like Eminem and Elon Musk, among many others, have also dabbled with the technology. Even companies like Adidas and Nike have done large-scale NFT projects that have seen roaring success.
This is the same kind of fervor that Facebook will be hoping that NFTs will bring to its products. However, it remains to be seen if the company can launch some valuable digital merchandise or collectibles with the same appeal.
NFTs are, in a sense, just another asset class supporting the currency asset and blockchain exchange growth. For those investors looking for exposure to the asset class, I believe that many opportunities will come our way, whether through managed funds or individual NFTs themselves. While these opportunities are exciting, investors should keep in mind there is a risk of picking the right NFT, ensuring the transaction is secure and understanding the underlying value of the asset itself.
Head of Novi & Diem Co-Creator David Marcus speaks to Bloomberg’s Kurt Wagner about the digital wallet, the blockchain-based payment system, and the public’s trust in Facebook:
Marcus leads F2, or Facebook Financial, the internal group developing the company’s Novi digital wallet. That wallet could be used to hold NFTs, he said. “When you have a good crypto wallet like Novi will be, you also have to think about how to help consumers support NFTs,” he added. “We’re definitely thinking about this.” He wasn’t more specific about what kinds of NFT-related products Facebook might build.