It’s Meta’s final hurrah in the cryptocurrency industry

mark zuckerberg

Meta is no place for cryptocurrencies. Or at least that has been shown by the matrix of the social network par excellence in recent months. After the failure of its Diem cryptocurrency, formerly known as Libra –and which ended up being sold for 182 million dollars to Silvergate–, it now joins the closure of its pilot project to become an exchange gateway for these assets. Calibra, currently known as Novi, announces its final closure on September 1. More than enough time for the technology for users who have funds in the current portfolio to proceed to withdraw their funds.

This announcement, which was advanced by Bloomberg and later confirmed by the company itself through its news portal, does not catch anyone by surprise. It is well known that the relationship between Facebook and financial assets has not been positive. The reason? The lack of credibility that the company had both for the Government of the United States and all European countries. The problems of privacy and interference in public affairs that Meta had been dragging for years were not the best letter of introduction for a company that wanted to take the reins in the international financial sector.

The idea of ​​Meta controlling crypto assets was not at all seductive to the general opinion. The United States Congress itself ended up sinking any Mark Zuckerberg project related to crypto-assets. There was a desperate attempt on Meta’s part to somehow salvage the furniture. One that resulted in a name change for all platforms related to crypto-assets. Needless to say, it didn’t work: Novi and Libra kept dragging Meta’s problems into his new stage.

All in all, Novi was a pilot project launched in October 2021 for currency exchange using a Meta-hosted digital wallet; first in Guatemala and the United States, to expand the service to the rest of the planet. Their life expectancy will therefore not reach a full year or more geographies. This announcement is made at one of the tensest moments for the cryptocurrency market. It is no coincidence that this is happening at this very moment. But his activity will not fall on deaf ears. According to Meta’s statement, the technology created to power Novi’s platform will be dedicated to the promised metaverse on the social network.

How? It is not yet clear, but everything points to an asset exchange system within the digital universe created by the company. Perhaps related to the well-known Zuck Bucks that Meta advanced a few weeks ago. Or what is the same: virtual currencies to operate within your metaverse. Without value outside of it and controlled by the technology center. And is that Novi was born with few expectations of succeeding in the cryptocurrency sector, portfolio management, and international transfers. Instead of using its token – which made sense as a house value bet – Meta chose to use USDP as it was considered much more stable than its financial product.

An unequivocal sign that Novi and Diem did not have much of a future, not even for the Meta itself. And that, as a consequence, has ended up being demonstrated in the present. The interests of the technology have focused on feeding a metaverse that aims to be the pioneer among those proposed, as well as its entry into NFT products. Now in the doldrums and crypto.

What do you think?

Written by Rachita Salian


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