Meta Platforms (formerly Facebook) has ended its Novi crypto project. It is advised that users withdraw their funds immediately. This announcement came after Mark Zuckerberg, Meta CEO, had announced the launch of a digital wallet to the metaverse.
Ending of Crypto Project Novi
Facebook owner Meta Platforms Inc. (Nasdaq: META) announced Friday that its crypto project pilot Novi “is ending soon.” According to its website:
After September 1, Novi is no longer available.
In Friday’s announcement, Meta explained that starting July 21, users will no longer be able to add money to their Novi accounts.
Additionally, the Novi app as well as Novi on Whatsapp won’t be accessible starting September 1st. Users will also not be able log in to their Novi accounts.
Users are advised to cash out their Novi accounts before September 1. All funds remaining after this date will be transferred directly to their bank accounts, or to debit cards they have listed in Novi.
Digital Wallets: From Novi to Meta
Novi, a digital wallet that allows you to instantly transfer money using cryptocurrency without fees, is what its website says. Meta, Coinbase and Meta were its partners in custody when Novi was launched beta last October.
The Novi account balances can be kept in USDP, which is a stablecoin that has been issued by Paxos Trust Company. This company is a regulated entity. Meta originally intended to use the cryptocurrency Diem, previously Libra, as its payment method. The company encountered numerous regulatory obstacles and ultimately scrapped its plan. In January, Silvergate Capital said it had “acquired intellectual property and other technology assets related to running a blockchain-based payment network from the Diem Group (‘Diem’).”
Meta has increased its business in the metaverse. Mark Zuckerberg, the CEO of Meta stated that his company wants to bring billions of people into the metaverse. This will generate huge revenue for Meta.
On June 22, Zuckerberg announced that Facebook Pay will be rebranded to Meta Pay. He also revealed a digital wallet that will be used to manage the metaverse. “Beyond the current features, we’re working on something new: a wallet for the metaverse that lets you securely manage your identity, what you own, and how you pay,” the Facebook co-founder detailed.
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