Facebook (FB) is plowing ahead with plans to shake up the cryptocurrency-based payment system, even as the company contends with new accusations by the federal government that it is abusing its market power.
On Wednesday, David Marcus, the Facebook guru spearheading its crypto efforts, unveiled new details about Novi, the digital wallet side of the initiative he called a “challenger in the payment industry.”
In a lengthy post on Medium, Marcus revealed that Novi has secured licenses or approvals in nearly every state. It will offer free peer-to-peer payments “domestically and internationally” and earn profits from “merchant services” similar to other crypto wallets.
Marcus' post came a day before the Federal Trade Commission refiled a claim that accused Facebook of running an illegal "buy or bury" scheme. Amid widespread concerns surrounding the company's business practices, it's unclear whether the FTC's action could impact Facebook's ambitions in the blockchain sector.
Formerly known as Libra, Diem is the cryptocurrency and blockchain-based payment system Facebook first announced in June 2019. After facing major backlash from global regulators and industry players, the tech giant dramatically scaled back its plans and rebranded the project as "Diem."