Meta to Discontinue the Novi Crypto Wallet in September

Meta Platforms Inc, previously Facebook Inc, has stated that its Novi cryptocurrency digital wallet will be discontinued on September 1st.

According to the Meta, the most recent announcement continues by asking users to remove their funds as quickly as possible.

Users will be unable to contribute dollars to their accounts beginning July 21, according to the social technology company. Users will lose access to their transaction history and other data once the Novi wallet test program expires. Novi's WhatsApp account and the Novi app would also be deactivated, according to the business.

However, Meta stated that it will make every effort to transfer any remaining funds to consumer debit cards and bank accounts after Novi's last day of business.

The closure of the Novi wallet will mark the end of the Libra stablecoin experiment, which began three years ago when Facebook announced its ambitious goals.

Despite the fact that Meta opted to discontinue the Novi pilot project, the company stated that it intends to repurpose the technology for future products, including its metaverse endeavor.

In an emailed statement, Meta said: “We are already leveraging the years spent on building capabilities for Meta overall on blockchain and introducing new products, such as digital collectables. You can expect to see more from us in the Web3 space because we are very optimistic about the value these technologies can bring to people and businesses in the metaverse.”

Meta has already begun investigating the possibility of supporting non-fungible tokens (NFT) on its platforms.

Regulatory Difficulties

Novi, Facebook's digital wallet, launched a pilot program in October to evaluate the service's performance in two countries: the United States and Guatemala. Novi was able to test all of its primary functionality and determine what needed to be improved before launching the bitcoin wallet. During the test, Novi used the Pax Dollar stablecoin as the primary currency, with the goal of launching the Diem stablecoin digital currency if Washington regulators approve it.

Users in both countries could download the Novi digital wallet app for Android or iOS smartphones and fund their accounts with a debit card as part of the experimental program. They were able to send and receive Pax Dollars (USDP), a stablecoin issued by Paxos, via the wallet.

Soon after Facebook released the Novi wallet test, a group of high-profile US senators lead by Elizabeth Warren, including Brian Schatz, Tina Smith, Richard Blumenthal, and Sherrod Brown, demanded that the crypto wallet be shut down immediately. The five senators wrote to Mark Zuckerberg, the creator and CEO of Facebook, expressing their concern about the social media company's ability to combat money laundering, protect users, and monitor other security and financial threats. The senators were outspoken in their opposition to Facebook's resurrected effort to establish cryptocurrency and digital wallets.

David Marcus, the chief of Meta's financial technology unit Novi, left the company in November of last year after seven years with the company.

Diem's CEO Stuart Levey, who took over Marcus's job directing Novi and other payments projects in February of this year, announced the end of the Diem dream owing to continuing pushback from federal regulators. Levey announced the sale of Diem's assets to crypto-focused bank Silvergate Capital for $200 million.

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