Facebook has launched its much-discussed digital wallet, Novi digital wallet, in partnership with popular crypto trading platform, Coinbase.
Novi (currently in the test phase in the U.S. and Guatemala) will allow users to send and receive funds internationally, 'instantly and with no fees' using Paxos, a USD-backed and regulated token.
Calibra becomes Novi: Novi was initially introduced as Calibra in 2019, and Facebook's stablecoin, Libra. But after U.S. lawmakers refused to regulate it due to security concerns, Facebook rebranded them (Calibra became Novi; Libra became Diem) and the launch was postponed.
The name isn't the problem: Moments after Facebook's Novi announcement, U.S. lawmakers sent a letter to Facebook CEO Mark Zuckerberg, asking him to terminate the project. They believed the company had shown no evidence that they could trust them to keep customers safe.
The U.S. may force Novi to close shop if they don't adhere.
Bottom line: Some experts believe much of the pushback from lawmakers comes from concern that, with their market share (including users on FB-owned platforms Instagram and Whatsapp), Facebook's stablecoin ambitions could undermine traditional currencies such as the U.S. Dollar and the Euro.
Can Facebook be trusted? Stablecoins are regulated and backed by insurance to protect the user, and Paxos have that going for them. But with all the data infamy surrounding Facebook, scepticism is understandable. However, Facebook does not have a monopoly here. Many easy-to-use platforms like Coinbase and Exodus, offer the same service as Novi (and more).
