Facebook Tests Novi Cryptocurrency Wallet With Coinbase And Paxos
For its future Novi mobile wallet initiative, Facebook has partnered with Coinbase and Paxos. The initiative began its preliminary trial phase on Tuesday in the U. S. and Guatemala. A limited number of users in both nations will be allowed to install the Novi mobile wallets application on their iPhones or Android phones and deposit money into their accounts using a debit card. In the meantime, they will have the option of sending and receiving money in the form of Pax Dollars (USDP), a Dollar-backed Stablecoin produced by blockchain trust business Paxos.
USDP was chosen by Facebook for inclusion in its pilot program based on its “significant administrative and user safety qualities” and its established track record. Because the USDP holdings are heavily endorsed by cash, Novi users will be able to redeem their funds in their native currency when using the service. Coinbase, which oversees $180 billion in holdings, will safeguard users’ funds
Compatibility With Other Wallets
A spokesperson for Facebook informed reporters that the trial stage will allow the company to examine the wallet’s basic operations and demonstrate operational skills, particularly in the areas of customer support and compliance, among other things. Another feature is that Novi is also being built to be compatible with other e-wallets.
According to the spokesperson, the corporation has not discontinued support for the Diem network, which is an uncensorable payment method that is still seeking approval from the federal government in Washington. According to the company, “we expect to debut Novi alongside Diem as soon as it gets legal authorization and becomes live.”
However, while having substantial lobbying strength in Washington, Facebook has encountered difficulties in getting prominent lawmakers to support Diem. Since 2019, the envisioned payment network has passed through multiple design modifications, but worries about financial fraud and Stablecoins have caused the authorization to be stalled. Authorities have been pleased with some of the technical modifications.
What Is Facebook Diem?
Facebook Diem is a blockchain-based uncensorable payment mechanism. The platform will use Diem as a Stablecoin and a blockchain network. Even though Facebook initiated the idea, Diem Association would monitor its entirety for openness. In addition to technological enterprises, the Diem Association includes venture capital firms and non-profit organizations.
Neither Libra nor Diem is autonomous. While permissionless is the objective, Diem will initially run on a permissioned blockchain. As a result, only Diem Group subscribers can use it. No comprehensive solution for handling permissionless operations for its billions of prospective users has yet been created by the design team. Fans believe this will improve as the project progresses.
Diem’s mission is to make global financial operations more accessible and quicker. The Diem Project will be backed by the US Dollar, Euro, and Pound. If approved by US authorities, Diem will act as a full-fledged central bank using blockchain technology. As you may be aware, this is not like Bitcoin (BTC).
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