We have been emphasizing on decentralization and it’s importance but power hungry people will always want to centralize, because they want to be in control. This has not ended well most times for these people, we can see from what happened to Coinbase and it’s lending feature. Now we are seeing it happen with Facebook.
Few weeks ago Facebook announced the Novi wallet which was later launched with a partnership with coinbase. Five senators sent out a letter for an immediate discontinuation of the stablecoin coin, Diem, and the wallet, Novi. This is based of the scandal Facebook has been involved with over the years. This is absolutely not the first time regulators have been on Facebook’s case towards their venture in cryptocurrencies. I remember in 2019 when Facebook wanted to release “Diem” but the name was “libra” at that time, there were lots of scrutiny that eventually made investors dissociate theirselves from the project.
The Novi wallet was to hold the Facebook stablecoin and eventually hold other stablecoins as well. This wallet was launched on the 19th of this month in US and Guatemala, using Coinbase as a crypto custody service.
Facebook has been known for breaching user privacy for a very long time and this has been one of the greatest controversies Facebook is currently facing. How can we trust you with our money when we can’t trust you with our conversations and our personal data. This was the main reason the wallet and coin were discontinued by the senators.
Let’s not forget that Facebook openly stated that it would be investing in the metaverse also, this is something we also need to be vigilant about because if it’s a cryptocurrency metaverse on a Facebook centralized blockchain, then our data is not the only thing we should be worried about. I don’t really know if the world will ever fully trust Facebook anymore but as long as most of their creations and idea are built on either Web 2.0 or centralized platforms, am cool investing and using Hive. Besides Hive is built on Web 3.0 experience and blockchain.
But talking about decentralization, you can see how easily the government went after Facebook few hours after launch. But not after Satoshi Nakamuto because he is anonymous and Bitcoin is decentralized. The government wish they could do that to bitcoin or any other decentralized cryptocurrency.
The company is still hoping to push through with Novi and Diem initiative but getting regulatory approval is the most important step to take. This is something bitcoin never went through.
Over the years decentralization has always shown to prove that it’s the answer and the solution to our quest for total financial freedom from the government.