Facebook intends to present NOVI wallet as a trusted player in industry

Highlights

  • Novi Wallet will be a Diem blockchain-based payment platform which can facilitate crypto payments
  • The Novi Wallet promises to be a person-to-person payments system that can used domestically as well as internationally.

Facebook announced its ambitious plan to make in roads into the cryptocurrency market with Novi Wallet. The social media giant, which has already entered the space previously with its stablecoins Diem previously known as Libra, expects Novi Wallet to enable its users to move money domestically and internationally in a quick and affordable way.

David Marcus, who is also the co-founder of the Diem Consortium, in a blog said that the social media giant is banking on the desire for people to move toward cost-free payments. The digital payments are making the financial systems open, regulated and secure, he stressed.

He added that Facebook will use the Diem blockchain based cryptocurrency for the functioning of Novi wallet. The users will be able to add money to their wallet and which will later be converted to diem digital currency.

Marcus emphasized that by allowing users to make transaction in fiat through Novi wallet, it will add to the credit value of the domain. While other platforms tend be slightly expensive in terms of transferring money, Facebook’s Novi Wallet promises to offer cheaper and cost-friendly platform for the users.

Marcus, who was the former president of PayPal and co-founder of Diem Consortium, said that the current financial system needs a fresh approach and its where the Novi wallet can bring a change. Novi has already received the approval and licenses from almost all the states in the US, he added.

He said that the system would help users, merchants, and businesses to move funds around and across borders easily and quickly.

Crypto regulations

Facebook, previously, has had their fair share of regulatory troubles. Regulators have come down hard on the crypto, especially stablecoins. The regulators in fact had ordered a probe into popular stablecoin Tether wherein they found that the company minted tokens without reserves.  In recent weeks, Treasury secretary Janet L. Yellen, Securities and Exchange Commission chair Gary Gensler, and Senator Elizabeth Warren have called for strong regulations to ensure that investors interest is protected, and they don’t lose their money due to scams or hackers stealing the money away.

Facebook too had their fair share of regulatory troubles when it had come great scrutiny from the regulators when they had launched Libra. However, with Novi wallet Marcus believes that Facebook requires a longer stint to prove how useful it is for the crypto market. In fact, he said that he is willing to reconsider its crypto plans and may choose to go with just fiat currency if they could see an improvement in wallet’s usage.

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