Facebook launches Novi, a digital wallet for cryptocurrencies

Facebook keeps announcing changes.

Photo: KIRILL KUDRYAVTSEV / AFP / Getty Images

Novi, part of a pilot program on the use of cryptocurrencies for payments, is the new announcement of Facebook.

This was announced David marcus, the main responsible for the financial services of Facebook.

Novi is only available in the United States and Guatemala. This in a pilot program. In this way, those who have Novi will be able to send and receive money without paying commissions, using the cryptocurrency Pax Dollar. Diem, Facebook’s cryptocurrency, will be operated by Novi when approval is obtained regulatory requirements, Marcus said.

CoinbaseFor his part, he assured that he would store the cryptocurrencies of Facebook, whose users register for the trial version of Novi.

Novi users will negotiate with Paxos, linked to the US dollar, called USDP, with “important regulatory and consumer protection attributes.” He also noted that its “reserves are fully backed by the US dollar and are kept 100% in cash and cash equivalents.”

The news, however, has not been well received by all. Democratic Senators Brian Schatz, Sherrod Brown, Richard Blumenthal, Elizabeth Warren and Tina Smith, asked Facebook through a letter that “immediately suspend your pilot of Novi and pledges not to bring Diem to the market ”.

This, with the argument that “can’t trust facebook to manage a payment system or a digital currency, when its ability to manage risks and keep consumers safe has proven to be totally insufficient ”.

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