David Marcus, CFO of Facebook: Why do we need to change our finances?

Why change the phone line?

There has been a lot of talk and debate in the United States recently about securities, cryptocurrencies, and other digital assets. I'm very happy to see the conversation picking up steam, especially now. Because the transition to a lump sum payment is faster than ever.

The technology we have today is expensive, slow and uninterrupted. There are still around 1.7 billion people in the world who do not have a bank account, and some do not benefit much more. Among them are 62 million Americans without a bank account or without a bank account. Overall the growth rate of cross-border payments is negative, the average price consumers can afford to pay is 6.5% (more than double the Big Target of 3%), with an average of the last payment of 3 hours . me.

COVID-19 has become an increasingly important part of the digital industry around the world. It makes a difference in the way people shop, where they buy, discover and interact with businesses. This has made many families more dependent on remittances as their main source of income. And that feeling will continue. The share of global digital commerce is expected to rise from 57% before COVID-19 to 67% by 2025. All of this makes businesses and developers more important than ever, to help people in the background.

However, there are still many challenges to be resolved for the new role. At this critical juncture, the United States should take the lead in change, but we are now in second place, leaving both the country and China to take the lead.

I encountered this problem while leading the Facebook group that created Novi Wallet for over two years. Interchangeable digital wallets allow people to enable small businesses to sell money quickly and cheaply, both at home and abroad. The path.

During that time, I have talked a lot about our options. And we've talked a lot about why we're so passionate about spending more money to develop Novi than the trust benefits we all know and use, which is government revenue. today. I want to take the time to explain why this is important to us.

How Stabilitycoins Can Help Solve the Problem

Let us be clear that if we only give Novi fiat money, it will be more beneficial for people. We can provide home and international payments which will help Facebook as it will create more wallets. As a result, it allows us to accept payments from Novi customers while paying our competing customers, thus creating a more profitable business environment.

So why not do it and call it a day? Well we can. But before we do that, we firmly believe that if there is an opportunity to establish open and mutually beneficial deals on the internet and to change the rules of the game for individuals and businesses around the world, now is. In fact, membership in a Diem Association or something else can help many businesses achieve this goal.

There has been a lot of recent talk about fixed coins and their role in payments, but fixed coins alone cannot solve the problem. To reach its full potential, it must be paired with a native payment network that is cheaper, faster, more secure, interactive and programmable. This is a more open system than the previous process which has been shown to prevent excessive dissemination of new developments. Indeed, since the creation of the first credit card network more than 60 years ago, today the payment system has undergone only a few innovations.

It is important to understand that not all fixed parts are created equal. The definition of a well-established stability coin is the way reserves are created and managed, the transparency of reserves to consumers and regulators, and user protection and buy-in. A well-established Stabilitycoin still has 1: 1 currency reserves in US banks and very short-term Treasuries, and issuers hold the capital as a buffer, providing more than a legal balance on a US wallet. Better national consumer protection.

The same goes for bank accounts, if not FDIC insurance. The former is an investment allowed to hold less assets, while the latter has some of the money set aside for banks to hold short-term debt in the majority of their short-term assets. The point is, while all bank users want to withdraw all their balance in a short period of time, even in heavy bank, long-term bank asset withdrawals have been slow.With well-designed stable coins, this risk does not exist.

A stable and well-established ecosystem of coins and wallets in terms of money laundering prevention, financial fraud prevention, penalties and tax compliance will improve the traditional use of management. By definition, digital assets are anonymous, which is wrong. Design and implement stable coins and wallets along the way, putting consumers at the heart of our compliance. If the management of a stable coin is designed to work with the management of a personal portfolio that supports it, the potential for better investigation and violation reporting will be better for existing processes that are. usually performed after completion and inspection. position.

This approach has demonstrated the potential for better prevention of financial fraud. Contrary to many ideas, stability coins with strong network and portfolio level control offer a tremendous opportunity for innovation in this area.

When the best ideas lead the way

However, in the United States, our health care payment system is the worst in global construction and has rebounded, while China has developed its continuous and rapid construction, making the digital yuan competitive. The dollar as a world currency. Automated Clearing House (ACH) payments in 2018 accounted for 66.1% of non-cash payments in the United States, according to 2019 Federal Reserve Payments Research. ACH got pregnant in the 1970s and still took up to 3 days to make the payment. At the same time, American consumers receive 10 times more consumer goods than in Europe.

While deploying Novi, we spoke to many people who are now suspended or out of service. I was shocked to learn that so many people are eligible for bank loans. In fact, many of them have already had money. They cannot pay the debt and need cash by putting down an estimated 10% down payment without being fooled by the unpaid debt. How did it go through someone? If we want to accompany and empower people to succeed, we must have access to procedures that prevent and remedy money, and work for them without discrimination on lower value.

That's why we come to Novi every working day. We believe we can help many people who deserve a change for the better. Just designing a closed system with fiat money to have the greatest impact will not reduce its benefits. We must seize the opportunity to create open, affordable and usable ecosystems and networks that are close to real time. Here are our three visions of Libra for the summer of 2019.

After Libra was declared, we promised the public that we would not declare Libra's Novi (now Diem) without the necessary consent and that we would work with authorities, authorities and manufacturing specialists. We live up to this commitment and have maintained good discussions with regulators and policy makers around the world.

In the United States, almost all states are licensed or approved by Novi, and it is not distributed where it has not yet received such a license.The Diem has become an independent organization and maintains its own dialogue with the United States and the international community. Solve all the necessary problems by designing and producing products of stable quality while protecting the wide range of consumers;

However, during this trip, I heard a lot of arguments in the payments and financial services industry that Facebook should not be allowed to participate in new developments here. I have heard many conversations, and this request would be successful without the involvement of Facebook.

First of all, Facebook is involved in the payments industry and has been around for some time. We announced Facebook Payments in 2009 and have generated over $ 100 billion in payments in the past 4 months. We have a number of successful peer-to-peer payment products in the US and internationally, managed well, and more. Individuals and companies in more than 160 countries use our platform to pay for 55 services. Customers can buy, create in-game products, for free, and make in-app purchases.

Second, I find this view to be incompatible with American preferences. I came to this country to be a happy citizen because of its value and the opportunity to create products that improve many lives and improve the lives of our families. One of the main tenets of our value system is our commitment to the level of play. An individual or a company that provides a solution to a problem will have a lot of time.

Facebook has a lot of work to do to rebuild trust, but it continues to reward consumers who interact with similar key services. Communication devices like WhatsApp and Messenger help thousands of people communicate at a fraction of the cost of apps before they even appear. If you think about it, we've played an important role in getting people to communicate freely and without restriction. With international calls at $ 1 a minute and mail at 25 cents a minute, this special is only for the rich.

So I think we have to be honest. We can and must play a vital role in resolving the crisis that continues to plague many, and shaping America with more competition and innovation to break the cycle. In addition,At a time when the dollar's importance and our global reach have been challenged like never before, we must harness the distribution and capacity of our businesses. Wisdom is doing its best to win the silent war against our country.

We will also speak of scale. I understand and agree that our size needs to be investigated further. Given the power of Facebook, some believe that Novi will immediately be used by hundreds of millions of people around the world. This is not how it evolves, based on our experience starting up and continuing to learn more about payment instructions. No matter how long they use Facebook, people have to choose the right way to open a Novi account. As part of creating a new account, it will take time for Novi to promote new customers, as Novi is committed to customer satisfaction, including identifying customers themselves by sending government announcements. Novi will trade in a small part of the country, as he might not be able to trade in any order until he is properly licensed and followed local laws and standards.

We have also heard concerns about our ultimate goal. The motto is "Perfect you have to have a bad idea to make money and you can't do it with good intentions!" Only you can't blame people who think this way. However, these words stem from a misunderstanding of the ethics of the tech industry and the best tech companies.

We focus on solving big problems for adults first. I finally found a way to work and earn money.In this case, our economic model is very clear. We are competitors in the payments industry and will provide free home and international personal payment to Nobi Wallet users. We believe people will prefer free services which are more convenient than cheaper and cheaper ones. When you have a high-value customer base, you can deliver cheaper deals to businesses around the world while making money from marketing services.

Where is the future of money?

Finally, I think of Mark Zuckerberg's vision for the Metaverse recently. Factoring money into Metaverse has always been beneficial to us in the development of our products and the results that support them. After all, what would it be like if money and payments were created just for today's digital world? They will never be like our current infrastructure.

We want to be open, interactive, close in time, affordable, in accordance with international exchange agreements that allow individuals, developers and businesses to easily exchange money and updates through programmable effects.The wallet must support NFT. Real contracts and members are replaced by smart contracts. It may seem incompatible with the reality we live in from the people we want to work with - who have abandoned the current process - but it is not real.

The change must have happened a long time ago. How it will go. Novi is ready to go out. It is managed and we are confident in our ability to work beyond our high standards of compliance. We believe that the delay in providing cheaper, more interactive and accessible digital payments is not unreasonable. We will continue to prove and prove that we can be a business partner and that partnerships can make a difference.