Facebook has a plan to take over the world of digital wallets, using cryptocurrency to separate it from the likes of PayPal (PYPL) and other digital payment platforms. Its upcoming digital wallet, Novi, will be built upon the still-pending stablecoin Diem.
Diem is the cryptocurrency that grew out of Facebook’s in-house project that began in 2017 and was first known as Libra.
After it was publicly revealed in 2018, the coin received intense scrutiny in Washington, DC, and around the industry.
The cryptocurrency project, rebranded as Diem, now operates as an independent association but retains close ties to Facebook.
Facebook executive David Marcus straddles both worlds, sitting on Diem’s board of directors and heading up Facebook Financial — which plans to launch Novi in the coming months.
Diem coins will be backed by a combination of cash or cash equivalents and short-term government securities, which Marcus says will keep them secure.