Facebook: Novi digital wallet launched without Diem cryptocurrency

Facebook has started the deployment of its Novi digital wallet application. It is currently being done through a pilot program in the United States and Guatemala.

Novi will allow users to send and receive money using the Pax Dollar (USDP) – a stablecoin-type cryptocurrency – through partnerships with Paxos and Coinbase. On Novi, 1 USDP equals 1 US dollar.

USDP is a well-designed stablecoin that has been operating successfully for over three years and is has important regulatory and consumer protection attributes , “said David Marcus who is in charge of the F2 (Facebook Financial) group.

novi-usdp

The Diem will come for Novi

Even if it is not total, the choice of Pax Dollar is a little surprise. The introduction of Novi does not indeed take place with the cryptocurrency Diem (stablecoin formerly Libra) carried by the association of the same name and pushed by Facebook.

Our support for Diem has not changed. We intend to migrate Novi to the Diem payment network as soon as regulatory approval is obtained “, emphasizes David Marcus.

Beyond the pilot program, our economic model is clear. We are a challenger in the field of payments. We will be offering free person-to-person payments using Novi. Once we have a strong customer base, we will offer cheaper payments to merchants and make profits on merchant services.

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