Facebook to launch blockchain-based payment system , Novi
Facebook is set to launch Novi, a digital wallet designed to allow users add money to their wallets that would be converted to a Diem digital currency and then sent to others worldwide.
Facebook announced: “Today, we’re excited to introduce Novi — the new name and brand for the digital wallet that will help people send and hold Libra digital currencies. While we’ve changed our name from Calibra, we haven’t changed our long-term commitment to helping people around the world access affordable financial services. Whether you’re sending money home to support the family members who supported you, or you’re receiving money from your friends no matter where they are, the Novi wallet will make money work better for everyone.”
The Novi wallet app is built on blockchain technology to enable people to move Diem, a borderless cryptocurrency, freely, securely and affordably. Diem, which was first spearheaded by Facebook under the Libra name, is a blockchain-based payment system that has faced a number of roadblocks. Regulatory concerns over Facebook’s data privacy and potential money laundering issues have contributed to delays for the program that was meant to launch in early 2021.
David Marcus, Head of F2, Facebook Financial said: “Novi is ready to come to market. It’s regulated, and we’re confident in our operational ability to exceed the high standards of compliance that will be demanded of us. We feel that it’s unreasonable to delay delivering the benefits of cheaper, interoperable, more accessible digital payments. We will continue to persevere and demonstrate we can be a trusted player in this industry — and one that’s bringing positive change by being in it.”
In late 2020, Facebook’s cryptocurrency project revealed that the Libra Association was to refer to itself as the Diem Association. The Diem Association is a nonprofit consortium overseeing the development of the Diem stablecoin. Stablecoins are digital currencies that are pegged to a fiat currency, or a currency issued by a central bank. Novi is designed to allow users to add money to their wallets that would be converted to a Diem digital currency that could then be sent to others worldwide.
All Novi customers will be verified using government-issued ID, and fraud protections will be built in throughout the app. Describing the digital wallet, Novi explained: “When you add money to your wallet, we’ll convert it into a Diem digital currency that you can send to friends and family around the world. Select who you’re sending to, enter the amount, see the exchange rate, and make the transfer. You can track every step and add a personal note to your loved ones.”
According to Facebook, with Novi, sending money will be as easy as “sending a message”. Users will be able to use Novi as a stand-alone app, as well as in Messenger and WhatsApp. “There will be no hidden charges to add, send, receive or withdraw money and your transfers will arrive instantly,” the big tech added.
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