Users in enlisted zones could send and receive USDP in their Facebook Novi wallets, with Coinbase taking care of it.
Social media giant Facebook is set to launch its Novi digital wallet with help from Paxos and Coinbase. There are reports that Novi will debut in the United States and Guatemala as part of a pilot program. Paxos, a New York-based blockchain and crypto services company, will supply Paxos Dollar (USDP) stablecoin to Novi. In addition, the major US crypto exchange Coinbase will provide custodial services for the initiative.
Facebook’s Novi North / Central American pilot program means that users in the aforementioned parts of these regions can start trading USDP. In addition, they can also buy USDP through the Facebook Novi wallet, which in turn will deposit the funds with Coinbase. In addition to user money, Coinbase will also provide a $ 320 million commercial crime insurance policy. He will assume the custodial and insurance coverage obligations through his company Coinbase Custody Trust Company.
Facebook says Novi will return to Diem after regulatory requirements
Facebook pointed out that the original plan was for Novi to launch with Diem, its blockchain-based internal payment system. However, the platform has yet to receive regulatory approval. Nonetheless, Facebook has also made it clear that once Diem is in the clear, Novi will get it. The social media company released a statement in this regard which reads:
“This does not mean that our support for Diem has changed, we intend to launch Novi with Diem once it receives regulatory approval and goes live.”
Diem, known as Libra until December 2020, was first developed in May 2019. The Novi pilot, which has already gone live, is currently experiencing slow deployment on the Apple App Store. and the Google Play Store.
Coinbase Global Inc (NASDAQ: COIN) stock jumped 4.1% in pre-market following news from Facebook.
Novi is a digital wallet that allows people to send and receive funds abroad instantly, securely and at no cost. In addition, the history of users’ transactions on Novi will only be visible to the individual. The money sending platform uses identity verification and also has anti-fraud and refund protection.
Plus, getting started with Novi is pretty straightforward and straightforward. Users use their phone numbers or valid government-issued photo ID to create an account. Once this phase is successfully completed, they can simply add a debit card to deposit funds into the newly created account. The Novi platform automatically converts money to USDP using the exchange rate of 1 dollar to 1 USDP, with no markup.
After clearing this phase, users can now select a contact on their phone and enter the desired amount to send. The sender will get a preview of the amount in the recipient’s local currency. Moreover, they can also add a personal note and finally send it. The recipient collects the funds from their Novi account, failing which the sender can invite them to create one. Finally, on the receiving side, recipients can choose how to withdraw the funds sent. They can make transfers to their local bank account, make withdrawals in local currency or keep a balance safe on the Novi platform.
Tolu is a Lagos-based cryptocurrency and blockchain enthusiast. He likes to demystify crypto stories down to the essentials so that anyone, anywhere, can understand without much background knowledge. When he’s not in the thick of crypto stories, Tolu enjoys music, loves to sing, and is a movie buff.