Facebook starts testing Novi wallet and Paxos stablecoin in US and Guatemala

By admin On Oct 20, 2021

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Facebook started a ‘small pilot’ for the Novi wallet on Tuesday. Within the pilot, users in the United States and Guatemala can send money to each other. Novi was previously known as Calibra and currently uses a stablecoin from Paxos.

With the test, Facebook wants to investigate whether the technology works and is suitable for customers. For the pilot, the company is partnering with Paxos and Coinbase. Users can convert dollars to the stablecoin USDP, or the Pax Dollar. This is pegged to the US dollar and users in Guatemala can convert back to the Guatemalan quetzal. They can send this money to their bank account or withdraw it as cash.

The Novi app can be downloaded from the Apple App store and Google Play. Facebook talks about a limited number of users and a waiting list; It is not known how many users are now allowed. Users must upload their ID card before they can send or receive money. There is no charge for the service, Facebook says.

Facebook unveiled the Libra payment method and the Calibra service more than two years ago. Initially, the service should have appeared in 2020. Libra was a payment method based on the Libra open source blockchain, for which Facebook collaborated with Visa, PayPal and eBay, among others. Calibra was the wallet.

Libra and Calibra were criticized by several organizations and governments, including the European Union. Due to this criticism, several partners withdrew, after which Facebook adjusted the plans. For example, the platform will support multiple stablecoins for different currencies. In addition, Facebook changed the name from Calibra to Novi.

In the meantime, Libra has also changed its name, to Diem. Facebook says it still believes in Diem, but due to a lack of support from governments, Facebook is not yet using the payment method. However, once this approval is obtained, Novi will have to switch to Diem. Facebook has not given any data on this; It is also not clear when Novi should become more widely available.