Social media giant Facebook is considering building products and features related to non-fungible tokens (NFTs), the digital assets that have taken off with the rise of blockchain technology.
“We’re definitely looking at the number of ways to get involved in the space because we think we’re in a really good position to do so,” Facebook Executive, David Marcus, said earlier this week.
Remind me again, what are NFTs?
The meaning of NFTs lies in the name itself. Non-fungible tokens are a type of cryptocurrency that cannot be changed or replaced by something identical.
NFTs are unique certificates for intellectual property and they are stored on the blockchain. A person who owns an NFT owns whatever media has been tied to it and has proof that they own it. I hope you get it, I’ll stop here and direct you to our explainer on NFTs.
Back to Facebook’s plans
Marcus who leads F2, or Facebook Financial, the internal group developing the company’s Novi digital wallet also hinted at plans to use them to hold NFTs.
According to him, Facebook’s digital wallet is ready but the company has been waiting to launch it until alongside Diem, the digital currency previously known as Libra, which Marcus co-founded from within Facebook in 2019.
The project faced immense pushback from lawmakers and regulators when it was unveiled in 2019, and while Facebook is still a partner on the project, Diem is now run independently. Plans are for Diem to offer a so-called stablecoin backed by the U.S. dollar, but it’s unclear when the coin will be introduced.
Zoom out: NFTs are still the rave of the moment. Benyamin Ahmed, a 12-year-old coder is set to earn over $400,000 after about 2 months selling NFTs. Also global payments processor, Visa, on Monday jumped into the NFT craze, buying a ‘CryptoPunk’ for $150,000.