Meta’s payments division announced the launch of an instant cryptocurrency transfer service in the WhatsApp messenger through Novi wallets in USDP stablecoins.
Information about the integration of the Novi instant transfer service with the WhatsApp messenger appeared on Twitter of the head of Meta’s payment division (formerly Facebook) Stephane Kasriel, who announced the launch of a pilot version. The custodian partner of the project at the testing stage was the Coinbase cryptocurrency exchange.
There’s a new way to try the @New digital wallet. Starting today, a limited number of people in the US will be able to send and receive money using Novi on @WhatsApp, making sending money to family and friends as easy as sending a message.pic.twitter.com/dGz3lejri7
– Stephane Kasriel (@skasriel) December 8, 2021
As conceived by the developers, WhatsApp users will be able to carry out transfers within the messenger without leaving the chat. It will be “as easy as sending a message.” According to the information published on the Novi payment service website, transfers will be carried out in Pax Dollar (USDP) stablecoins, without commission and restrictions on the amount and frequency of transactions. Withdrawal to a bank card will also be free.
At the same time, Meta does not intend to abandon plans to launch its own cryptocurrency. “This does not mean that our plans for Diem have changed. We intend to implement Diem support in the Novi wallet as soon as the cryptocurrency receives regulatory approval and is officially launched, ”Meta said.
At the stage of the pilot project, the possibility of money transfers is available to a limited number of users from Guatemala and the United States. Using Novi will not affect the end-to-end encryption of private messages and WhatsApp calls.
The project is rooted in Facebook’s highly publicized cryptocurrency plans that were officially announced in 2019. Previously, Facebook, as part of the Libra Association, planned to develop and launch a cryptocurrency called Libra, tied to a basket of low volatility assets rather than a specific currency. Libra was supposed to be integrated with Facebook’s Calibra digital wallet.
The publication of the White Paper of the Libra cryptocurrency and the disclosure of plans to implement settlements with its use caused a wave of indignation from regulators around the world, who saw Libra as a threat to the financial stability of national currencies.
In order to reduce the regulatory risks limiting the development of the project, Facebook re-branded the wallet for Libra and renamed it from Calibra to Novi, and the Libra Association, which develops the digital currency, changed its name to Diem Association. The Paxos Standard (PAX) Management Company Paxos renamed
stablecoin in Pax Dollar (USDP) to make it easier to match against the US dollar, and Facebook morphed into Meta. Removing formal obstacles allowed the project team to continue working on its development.
While Meta’s WhatsApp payment plans for Guatemala and the United States are still in the pilot phase, they have already received regulatory approvals in other parts of the world to conduct transactions using traditional fiat currencies. Payments within the WhatsApp messenger have spread in India and have also been launched in Brazil.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
