Meta is made with Diem, but not with blockchain payments

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  • Meta’s annual SEC filing indicates that Novi Wallet and many others may still use blockchain-based payments.
  • Stablecoins like USDC can be used for payments on Metafuture products.
  • Meta’s metaverse platforms are also supposed to integrate NFT.

Meta’s Cryptocurrency Project diem is in the ground and its intellectual property has been sold. But CEO Mark Zuckerberg isn’t done with blockchain-based payments yet.

In its annual 10-K filing with the U.S. Securities and Exchange Commission (SEC), Meta pointed out that future initiatives such as the Novi digital wallet could use “blockchain-based assets” like the stablecoin USDP, which is issued by the Paxos Trust Company.

Additionally, the company said its future initiative “to support commerce in the metaverse” could use blockchain-based assets in digital payments.

“The use of blockchain-based assets in payments is a relatively new and unproven technology, and the laws and regulations surrounding them are uncertain and evolving,”

Extract from Meta’s SEC filing


Meta knows it’s gonna be a bumpy ride

When Diem was killed, many wondered what digital payment mechanisms Meta would use for its future virtual platforms. In October, during the rebranding Facebook at Meta, Zuckerberg had said the company would inject significant resources into Oculus and future Metaverse platforms. It even featured meeting rooms, games, and more that were designed for these virtual spaces.

In its filing with the SEC, Meta noted that the company expects scrutiny from governments and regulators for its future digital payment systems. This, along with how the market accepts these new payment systems, means that Meta doesn’t know if its future payment systems will launch on time, or even if they will launch at all.

The company said it was “participating in responses” to government inquiries about its digital payments and said adverse actions by regulators and governments could “harm” its business.

Government acceptance is a key

The SEC filing, which comes days after Meta reported lackluster results for the fourth quarter of 2021, also reiterated some of the concerns Zuckerberg highlighted during the company’s earnings call earlier this month- this.

Meta said Facebook user growth in countries like India has been limited by rising data prices for prepaid mobile plans. However, a drop in the number of daily active users in the United States has also been observed.

Overall, Zuckerberg pointed the finger Applethe new application tracking transparency rules for the dip. According to him, since the new rules prevent companies from tracking user activity on the Internet, it has affected Facebook’s ability to target online advertisements.

In his October speech, Zuckerberg indirectly posited that one of the reasons Meta was focusing on the metaverse was to get out of the rules of companies like Apple. “The Metaverse will not be created by a single company. It will be built by creators and developers creating new experiences and digital elements that are interoperable and unlock a creative economy massively larger than that constrained by today’s platforms and their policies,” he said. in a letter at the time.

This means, Diem or not, that digital payments in the Metaverse will be an integral part of Meta’s future products. The company has also explored non-fungible tokens (NFTs) through platforms like Instagram, giving it even more responsibility to integrate blockchain-based payments into its future products.

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