Facebook reverses crypto ban as executive steps down

What

David Marcus, the head of Meta’s cryptocurrency efforts steps down as Facebook reverses crypto ban

Why

This comes after Meta failed to successfully create a cryptocurrency that would be used to send money via Facebook products

What next?

Stephane Kasriel will replace Marcus and Facebook’s new policy will allow more retail investors access to cryptocurrencies

The story

After failing to successfully launch their own cryptocurrency called diem, Facebook is now reversing its long-standing policy that prevented most cryptocurrency companies from advertising on its platforms.

This U-turn decision came shortly after David Marcus, the head of Facebook parent company Meta’s crypto efforts, announced he will be stepping down. Novi, which Marcus was overseeing, was intended to allow its users to send money online to anyone in the world via Facebook’s products.

“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,” said Marcus.

Marcus’ departure is just one of many key executive departures from Facebook’s failed efforts in blockchain technology. Executive Stephane Kasriel is expected to replace him.

Looking to the future, Meta/Facebook is set to expand the number of regulatory licenses it accepts from three to 27, which will allow retail investors unprecedented access to cryptocurrencies.

Henry Love, a former employee on Facebook’s small business team believes the new policy is a big step forward: “With more openness and transparency for what crypto companies can do, we will see more adoption for the cryptocurrency industry and the metaverse than ever before. This is a game changer for mass adoption.”

Another former Facebook employee, Edmad Hasan, said the changed policy will create fertile grounds for start-ups working in blockchain.

“These companies had been in a spot where they couldn’t advertise on Facebook. They couldn’t drive people to convert fiat currency into cryptocurrency,” said Hasan. “This will enable the average day-to-day person to do this.”

To learn more about blockchain, check out this short explainer.