Facebook has officially launched its Novi digital wallet in a limited pilot program across the U.S. and Guatemala, marking a significant milestone after two years of delays. The pilot enables users to send and receive funds instantly, securely, and without fees using the Paxos Dollar (USDP) stablecoin. Coinbase joins as a custody partner, safeguarding the pilot’s funds.
David Marcus, head of Facebook Financial (F2), emphasized that the pilot aims to:
- Test core functionalities
- Evaluate customer support and compliance operations
- Demonstrate stablecoins’ viability for payments
Diem’s Absence: A Key Omission
Despite initial plans, Novi’s launch excludes support for Facebook’s Diem cryptocurrency, originally intended as the project’s backbone. Diem (formerly Libra) rebranded to distance itself from Facebook but continues to face regulatory hurdles, with no live deployments to date. Earlier setbacks included:
- Major partners (e.g., PayPal, Visa, Mastercard) withdrawing post-announcement
- Relocation of operations to the U.S. after Swiss regulatory challenges
- A scaled-back plan for a USD-pegged stablecoin, per CNBC reports
Marcus reaffirmed Novi’s commitment to Diem integration "once it goes live," though no timeline was provided. The launch underscores how far the project has diverged from its original vision of mainstream cryptocurrency adoption.
FAQ: Novi Digital Wallet and Diem
Q: Can anyone join the Novi pilot?
A: Currently, participation is limited to select users in the U.S. and Guatemala.
Q: Why isn’t Diem part of this launch?
A: Regulatory approvals remain pending, delaying Diem’s rollout.
Q: How does Novi differ from traditional payment apps?
A: It leverages blockchain for fee-free, instant transfers via stablecoins, unlike conventional bank-based systems.