Facebook and Coinbase Test Novi Wallet Using USDP Stablecoin

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Facebook has selected the cryptocurrency exchange Coinbase as the custodian with which it will test the Novi digital wallet for the Diem (formerly Libra) payment system. The pilot version will be available in the US and Guatemala.

About the beginning of testing
reported exchange Coinbase on their blog. Novi users who participate in the wallet test will be able to purchase the Pax Dollar (USDP) stablecoin through their Novi account and transfer it to each other instantly.

The Coinbase Custody Trust Company, a qualified custodian and limited trust company, will be responsible for safeguarding the user’s money. It is regulated by the NYS Department of Financial Services and acts as a fiduciary under NYS banking laws. User funds are insured for a total of $ 320 million.

Head of Blockchain at Facebook David Marcus
wrote on Twitter that a test version of the Novi wallet will be available in two countries: the US and Guatemala. He said that 56% of Guatemalans do not have access to financial services, despite the fact that each of them uses a mobile phone. The money sent to Guatemalans by their relatives or friends abroad accounts for more than 14% of GDP, and 90% of these remittances come from the United States. Now citizens of these countries will be able to instantly and securely send money to each other without commissions.

“We will test the wallet’s core functionality and operational capabilities to comply with regulatory requirements. We hope that the USDP stablecoin will be used in a new way, as a payment instrument, ”wrote Markus.

Plans to support Diem stablecoin remain in place and will launch with regulatory approval. Marcus also said that it will take time for Novi to scale, so the wallet needs to be thoroughly tested before introducing Novi to a large number of people.

In August, it became known that the Diem Association had received a license to launch the Novi wallet in almost every state in the United States. In addition, Novi plans to add support for non-fungible tokens (NFT).

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