Facebook Inc. has announced that Novi, its much-anticipated digital wallet, is now available for purchase.
According to David Marcus, the head of Facebook Financial, the Novi wallet is poised to be incorporated into the Facebook app in a blog post published on Medium.com on August 18. Despite more than two years of regulatory challenges, Marcus voiced confidence in Novi’s capacity to succeed.
“Novi is ready to come to market. It’s regulated, and we’re confident in our operational ability to exceed the high standards of compliance that will be demanded of us.”
On the other hand, Marcus did not provide a particular date for the launch, only stating that the wallet is ready to use.
The Novi wallet, according to Marcus, is the greatest way to move money between individuals effortlessly. The digital payment system would be a worldwide, open, interoperable, near real-time, low-cost, and compliant global money protocol. He went on to say that the system will allow people, artists, and corporations to effortlessly transfer money around and create using programmable money.
Novi is a regulated wallet, according to Marcus, and the payment system can meet or surpass the rigorous compliance criteria that may be necessary.
He believes that delaying the benefits of cheaper, interoperable, and more accessible digital payments is ridiculous.
Marcus explained why the Diem Association relocated its headquarters from Switzerland to the United States, claiming that the resulting backlash from authorities was very un-American.
Regulatory Battles for Diem
Since its launch in June 2019, Facebook’s cryptocurrency initiative has been met with a barrage of regulatory criticism, forcing it to scale back its goals and rebrand.
The initiative was met with strong opposition at first, partly because it came from Facebook and partly because its lofty goals posed a threat to existing government-run banking systems.
Diem is the new name for Facebook’s Libra cryptocurrency, which was changed to show that the project had “organizational independence” while it seeks regulatory clearance for its debut. The project’s autonomous organization (Libra association) relaunched as the Diem association in April.
However, the Diem Association’s scope has decreased substantially due to major partners withdrawing from the plan after it was revealed that the initiative was beset by controversy and legislative difficulties from legislators throughout the world.
A basket of currencies was meant to back one Libra currency at first. On the other hand, regulators are concerned about Libra’s influence on financial stability, particularly in terms of money laundering and data privacy.
In April, the Diem Association said it would provide stable coins backed by just one country’s currency rather than a single coin backed by many currencies, reversing its earlier objectives.