Meta, formerly Facebook, has abandoned its digital currency project, Diem (formerly Libra). This came after pressure from regulators and design changes. However, the tech giant has not abandoned the idea of processing blockchain-based payments.
According to a report by CNBC, in a recent filing submitted to the US Securities and Exchange Commission (SEC), the company said that its future initiatives, including the Novi digital wallet, may use “blockchain-based assets” such as the stablecoin. USDP issued by Paxos Trust Company.
According to Meta, digital payments are part of its strategy for the metaverse:
“Our future initiatives to support commerce in the metaverse could also use blockchain-based assets in digital payments. Using blockchain-based assets in payments is a relatively new and unproven technology. And the laws and regulations that surround them are uncertain and evolving,” the company said.
Meta: Metaverse and Blockchain
Additionally, Meta stated that efforts to revolutionize digital payments were previously met with regulatory scrutiny from governments and regulators in all regions. So the company expects the resistance to continue.
The SEC filing also explicitly mentions Meta is responding appropriately to all entities. However, regulatory and government actions are likely to have repercussions on your business as well.
The company further claims that the uncertainty surrounding the market adoption of its digital payment systems is why they cannot commit to whether the products will be released “in a timely manner”.
On February 1, Stephane Kasriel, head of the Novi wallet project, said on Twitter that the company will “continue to execute” its “existing fintech plans” with a focus on metaverse-based projects.
This indicates that Meta will continue to move forward with some projects, specifically its digital payment wallet.
The company has also been using Facebook and Instagram to explore the non-fungible tokens (NFTs) space.