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| Facebook launches its digital wallet Novi |
Facebook began rolling out a small beta version of its digital wallet Novi in the US and Guatemala, more than two years ago since the first announcement.
The trial version allows users to partner with Coinbase (as a trustee partner who owns real money) to use Paxos Stablecoin to send and receive money instantly, securely and for free.
F2 President David Marcus said the pilot program aims to test core functionality and operational capabilities for customer service and compliance and try to demonstrate the practical application of fixed coins in payments.
However, it should be noted that the launch of Novi does not have its biggest asset, the Facebook-backed cryptocurrency Diem, which should have been the cornerstone of the project.
Deem was previously known as Libra, but later changed his name away from Facebook. But Diem is still awaiting regulatory approvals and has yet to launch its cryptocurrency in some countries.
Libra was heavily criticized when it was first announced. Several large partners (including PayPal, Visa, MasterCard, eBay, Stripe, and Mercado Pago) withdrew a few months after the project was announced.
The company recently stopped moving its business to the US after receiving regulatory approval for its stablecoin in Switzerland.
Facebook has not yet released the cryptocurrency Diem
According to reports earlier this year, Diem planned to launch a US stablecoin linked to the US dollar. This is not the larger scale the company originally intended. However, along with the Novi experience, this piece has yet to be finalized.
In the statement, Marcus confirmed that Novi is still associated with Diem. It was issued in cryptocurrency when it was released. However, the announcement did not include an update at the time of its occurrence.
The new release shows how much the size and scope of Novi and Diem have shrunk since the company was first announced. It also defines how far a company must go to achieve its goal of creating a mainstream cryptocurrency.
A group of US lawmakers have said that Facebook cannot be trusted to manage cryptocurrency and are urging social media platforms to immediately end their small crypto wallet pilot program.
Democratic senators have spoken out against the company's two-year effort to introduce cryptocurrencies and digital wallets.
In a letter to CEO Mark Mark, the senators wrote: “Facebook is back in pursuit of its cryptocurrency plans. It has made an attempt with payment infrastructure networks. Although these plans are not environmentally friendly.
“If Facebook’s current ability to manage risks and keep consumers safe is insufficient, it cannot be trusted to manage the payment system or digital currency,” the senators said.
The senator’s letter indicated that even small attempts at crypto wallets could be scrutinized by lawmakers and regulators who previously raised antitrust and other concerns.