Since 2018, one of the world’s largest social media sites has prevented almost all cryptocurrency companies from running advertisements on its platforms. This week, Facebook decided to make a U-turn on this long-running policy. Many crypto enthusiasts see this as yet another win for decentralized currency and its transition into the mainstream.
Facebook, now named Meta, tried to launch its own cryptocurrency recently. The aim was to allow Facebook users to send money around the world using the platform’s products. However, it was seen as a failure. Mainly due to the departure of David Marcus, the leading figure behind Facebook’s cryptocurrency mission, from the platform.
Before this announcement, prospective advertisers who held one of three accepted regulatory licenses were allowed to apply to advertise on the Facebook platform. They also had to list whether they were traded on a public stock exchange. Now, Facebook has extended its list of acceptable licenses from 3 to 27.
“We’re doing this because the cryptocurrency landscape has continued to mature and stabilize in recent years and has seen more government regulations that are setting clearer rules for their industry.”– Facebook statement on their acceptance of crypto ads on the platform.
The Facebook ban on crypto advertisements began at the start of 2018. Together with its recently acquired platform of Instagram, the ban prevented crypto and blockchain start-ups from reaching an enormous pool of potential customers and investors on two of the biggest social media networks on earth.
This easing on restrictions of such advertisements is said to be huge for the cryptocurrency sphere and will provide countless retail investors with the opportunity to acquire and invest in digital currencies. In addition, it is incredibly positive news for blockchain start-ups in what has otherwise been a very turbulent and negative year in the wake of the global pandemic.
Due to its enormous customer base that spans a wide range of societies around the world, this positive update for the crypto sphere is huge. It has the potential to convince huge swathes of the general public to make the shift from fiat currency to decentralized finance and will allow everyday people to do it with ease.
“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.”– Henry Love, a former employee on Facebook’s small business team
It appears that, despite ambitious beginnings, Facebook’s earlier aims to start its own form of cryptocurrency have shrunk enormously. In 2019 it announced bold plans for both a decentralized Facebook crypto and a digital wallet but lawmakers and regulators around the world responded to it in a largely negative way.
Although they did release the digital wallet, called Novi, in October. However, the cryptocurrency is known as Diem remains unreleased and it is now being run and managed by an independent association. Facebook’s crypto ambitions aside, their lifting of restrictions on crypto ads has the potential to be a major boost to the world o decentralized currency.