Facebook’s crypto project looks pretty bogged down

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Facebook's crypto project looks pretty bogged down

Facebook’s head of crypto projects, David Marcus, has announced his departure from the company. One more setback on a file that is having a lot of difficulty moving forward.

The final version of Facebook’s digital wallet, Novi, has yet to be launched, but the project’s boss has decided he won’t wait for it to see the light of day. David Marcus who oversaw Novi and worked on the development of Facebook’s cryptocurrency projects announced on Twitter November 30 that he left Meta, the parent company of the social network. ” After seven fulfilling years with Meta, I have made the difficult decision to step down and leave the company by the end of the year.. »

This former PayPal who supervised the Novi subsidiary since May 2018 recognizes that the work on this digital wallet – launched in pilot version for the time being – is however far from complete. ” There’s still a lot to do in the wake of Novi’s launch — and I remain as convinced as ever of the need to change our payment and financial systems — but my entrepreneurial urges have tickled me for too long to ignore. “says David Marcus in his thread.

Yet another setback for Facebook’s crypto projects

This departure is a setback for the Meta Group’s crypto projects. And Facebook’s parent company has already suffered a lot of failures at this level. The group announced with great fanfare, in 2019, the launch of a coalition aimed at creating a cryptocurrency called Diem (at the time it was called Libra). But barely a few months after its launch, several founding members left. And not just any members since they included Visa, Mastercard, PayPal, Stripe and eBay, companies that have strategic expertise in the field of banking or online payment.

Facebook’s desire to develop a digital wallet and a cryptocurrency that it could make available to its members to very simply make payments and money transfers has, moreover, met with a rather cold reception. Many American and European politicians have expressed concern that this will give disproportionate influence to a group that already has considerable weight in the global economy.

Bruno Le Maire, Minister of the Economy of France had thus made it known that France firmly refused the development on European soil of the cryptocurrency carried by Facebook.

The pilot project that the Meta group launched last October no longer has much to do with what it originally intended to do. If Facebook’s parent company has indeed launched an experiment with its digital wallet (in the United States and Guatemala), it is not backed by the famous Diem cryptocurrency (ex-Libra) that Facebook wanted to create with his coalition. It works with Pax dollar, a stablecoin backed by the dollar (one pax dollar is equivalent to one dollar) created by the company Paxos.

In October, David Marcus assured that Novi was ready to be put on the market and that the portfolio would switch to Diem, as soon as it had the green light from the authorities. But, given the reluctance of politicians and the turmoil in which the Meta group is caught elsewhere after the revelations of Frances Haugen on the functioning of Facebook, it may be difficult to quickly convince the authorities to open this new file.

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