Following months of rumors, Facebook has officially launched its digital currency wallet, Novi.
After its digital currency, Diem failed to satisfy investors, the social networking behemoth has opted to adopt the Paxos Dollar Stablecoins.
In a blog article, Facebook’s head of Novi wallet, David Marcus, revealed that the firm’s pilot has begun in the United States and Guatemala.
The software is available for iPhone and Android smartphones, and users must register with a government-issued ID.
Marcus also mentioned that money transfers between wallets would be free.
Following the appointment of Coinbase co-founder Marc Andreessen to the Facebook board of directors, the exchange is now offering assistance to Novi.
Diem was widely panned by authorities when it was initially introduced in 2019. Thus, Facebook’s move to drop it isn’t surprising.
The social media behemoth’s proposal to operate its digital currency alarmed regulators.
When Diem was initially launched, Marcus, who was also in charge of the firm at the time, claimed the corporation’s support for the currency “has not altered.”
“We intend to migrate the wallet to the Diem payment network once it receives regulatory approval,” he continued.
Novi will also be compatible with other digital wallets in the future, according to Facebook.
Stablecoins are the industry’s response to market turmoil, which has frightened investors and prompted worries among market authorities. Stablecoins are linked to assets such as gold or fiat currency to maintain stability.