text: The social media giant still intends to launch Novi along with its Diem payment network once regulatory approval is granted.
  Social media giant Facebook has tapped Coinbase and Paxos for its forthcoming Novi digital wallet project, which kicked off its pilot testing phase in the United States and Guatemala on Tuesday.
  Beginning Oct. 19, a small cohort of users in both countries will be able to download the Novi digital wallet app on iPhone or Android devices and add money to their accounts with a debit card. From there, they will be able to send and receive money using Pax Dollar (USDP), a dollar-backed stablecoin issued by blockchain trust company Paxos.
  Facebook selected USDP in its pilot program because of its proven track record and “important regulatory and consumer protection attributes.” Because USDP reserves are fully backed by cash, Novi users will have the ability to withdraw their money in their local currency.
  Customer funds will be custodied with Coinbase, which manages $180 billion in assets.
  A spokesperson for Facebook told Cointelegraph the pilot phase will allow Facebook to evaluate the wallet’s core functions and showcase operational capabilities, specifically around customer service and compliance. Novi is also being designed for interoperability with other digital wallets.
  The spokesperson also stated that the company has not abandoned support for the Diem network, a permissionless payment system that is still awaiting the green light from Washington. “We intend to launch Novi with Diem once it receives regulatory approval and goes live,” they said.
  Related: One currency to rule them all: Facebook’s Diem has global ambitions
  Despite significant lobbying powers in Washington, Facebook has run into obstacles convincing senior policymakers to approve Diem. The proposed payment network has gone through several design iterations since 2019, but concerns around money laundering and stablecoins have slowed the approval process. As Cointelegraph reported in September, policymakers have been encouraged by some of the design changes.
  Continue Reading
  Previous NFTs of empowered women aim to drive female engagement in crypto
  Next All-time highs next? Bitcoin holds $62K as the dollar index tumbles to 3-week lows
  Leave a Reply Cancel reply
  Your email address will not be published. Required fields are marked *
  Comment
  Name *
  Email *
  Website
  Join us on Facebook
  Facebook
  Cryptocurrency converter
  Weekly Analysis
  Weekly overview
  CoinZoom Adds Tron & TRC20 Tether for Trading & Yields
  1 month ago
  CoinZoom, the well-established cryptocurrency exchange, just announced that it is adding both Tron and a TRC20 version of Tether to its exchange. Both of these...
  Weekly overview
  Cryptocurrency Investing Using the Dollar Cost Averaging Strategy
  2 months ago
  There are probably some noble investors out there who got into crypto purely for love of the tech. They saw the world-changing potential in the...
  Weekly overview
  Matrixport Releases New “Auto-Invest” Tool for DCA Based Buying
  2 months ago
  Following the launch of “BTC-U Range Sniper” earlier this month, Matrixport, the digital assets financial services platform, has today announced the rollout of a new...
  Weekly overview
  Smart Money Performance Creates Doubts In The Stock Rally
  2 months ago
  Weekly overview
  Eightcap: Presents the Largest Cryptocurrency Offering for Retail Clients
  2 months ago
  Derivative trading has become increasingly popular, especially in the crypto market. However, there have been increasing frustrations for crypto derivative traders at exchanges and brokers,...