Novi: The Facebook Wallet

For years, Facebook has been discussing adding a cryptocurrency wallet to its list of products. As of Tuesday, October 19, 2021, the Facebook wallet is finally a reality. In this article we will be taking a look at the Novi wallet.

What is The Novi Wallet

More than two years after it was originally announced, Facebook has officially released the Novi digital wallet. The Novi wallet currently only utilizes the Paxos Dollar USD stablecoin (USDP). This “small pilot” program is available in the United States and Guatemala and will allow its users to send and receive money “instantly, securely, and with no fees.”

The pilot release of the Novi wallet is meant to test “core feature functions, and operational capabilities in customer care and compliance,” according to the head of Facebook Financial (F2), David Marcus. This early release of the Novi wallet is also meant to demonstrate the viability of using stablecoins for payments, over the more traditional fiat-based payment systems that are currently being used by Facebook customers. Paxos USDP is currently the only currency being used for the pilot version of Facebook’s Novi, however other currencies will reportedly be available on the platform after the release of the full-featured digital wallet.

Paxos USDP

Paxos Trust Company is a financial institution, specializing in blockchain technology. Paxos has been around since 2012 and is classified as a “Limited Purpose Trust Company,” Based in New York. The most notable products by Paxos include the itBit Digital Asset Exchange and the Pax Dollar (USDP) stablecoin, formally known as Paxos Standard (PAX).

Novi and Coinbase

The Facebook team has chosen to work with Coinbase for custodial support during the Novi pilot run. Novi users participating in the pilot can acquire USDP through their Novi wallet, which Novi will hold, on deposit with Coinbase. Users of Novi will also receive the benefit of coin base custody’s industry leading insurance program, which features a $320 million commercial crime policy.

Novi and Diem

One of the more curious aspects regarding the Novi pilot launch, is that Novi does not currently support the Diem coin, even though Diem is still a major cornerstone of the project. Diem is a Facebook-backed cryptocurrency which was originally released as the Libra coin. The Libra coin was renamed to Diem to distance the project from Facebook. Libra came under heavy fire when it was first announced. Multiple partners of the project pulled out of Libra, including PayPal, Visa, Mastercard, Stripe, Mercado Pago and eBay several months after the project went live. Diem plans to release one singular USD stablecoin, rather than the stablecoin basket which Facebook had initially planned on releasing under Libra.

Conclusion

As we all know, Facebook has a tremendous public presence. Facebook Pay gained a large amount of popularity since it was launched several years ago, and it is likely that Novi – acting as Facebooks branch into Stablecoin-based payment services – will create a larger public interest in cryptocurrency payments. With adoption comes higher highs in the cryptocurrency market, as is evidenced by today’s new all time high for Bitcoin. Be sure to check out products like Killer Whale Large Cap Sector Strategy and Killer Whale Premium Signals on our Killer Whale Products Page !

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