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Meta Loses Crypto Head; What’s Next For Diem And Novi?

Meta Loses Crypto Head; What’s Next For Diem And Novi?

David Marcus, who was the head of cryptocurrency at Facebook’s parent company Meta, has announced that he will be leaving the company at the end of the year. 

Head Of Crypto Leaves Meta Team

Marcus, who had joined Facebook (now Meta) back in 2014, shifted from his role as VP of Messenger to lead the company’s financial projects unit in May 2018. His departure could be accredited to the company’s failed attempts to launch its own cryptocurrency that could be used for global transactions via Facebook products. 

Announcing his departure from Meta, Marcus tweeted, 

“While there’s still so much to do right on the heels of launching Novi -- and I remain as passionate as ever about the need for change in our payments and financial systems -- my entrepreneurial DNA has been nudging me for too many mornings in a row to continue ignoring it”

Meta’s Unsuccessful Crypto Projects 

Projects like the Libra blockchain currency and the Calibra digital wallet were announced in June 2019 under his leadership, and both were expected to go live in 2020. However, the company faced much resistance from lawmakers and regulators. The launch of the wallet, renamed Novi, did not receive the fanfare and warm reception as expected as its pilot program only saw the light of day in the US and Guatemala. On top of that, the wallet only supported a single digital asset - the Paxos stablecoin. However, the biggest blow was Facebook’s much controversial digital currency, renamed Diem, which is yet to be released to the public after facing stiff resistance from regulators. 

Twitter And Facebook Undergo Leadership Changes

Marcus’s departure announcement is coming close on the heels of fellow crypto proponent Jack Dorsey’s decision to step down as CEO of Twitter. Politicians and regulators have been calling for Facebook to drop its crypto initiatives. On the other hand, leading shareholders have been reportedly calling for the resignation of Dorsey. Meta CEO Mark Zuckerberg commented on Marcus’s departure, saying,

“I’ve learned so much working with you and I’m so grateful for everything you’ve done for this place. We wouldn’t have taken such a big swing at Diem without your leadership and I’m grateful you’ve made Meta a place where we make those big bets. You’ve built a great team, and while I’ll miss working with you, I’m looking forward to working with Stephane to lead the team going forward.”

However, it seems highly unlikely that either one of them will be done with Web3 projects any time soon. Instead, word on the block is that Dorsey will be focusing on his role as the CEO of Square, the financial services app. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.