Meta to shut down Novi service in September in crypto winter

Meta’s Novi pilot — a money-transfer service using the company’s own cryptocurrency digital wallet — will end on September 1. Meta launched the Novi pilot in October of last year amid scaled-back ambitions to dominate the crypto remittances space.

Both the Novi app and Novi on WhatsApp will no longer be available, the company said on the Website. Starting July 21, users will no longer be able to add money to their accounts. Novi said, advising users to withdraw their balance “as soon as possible.” Users won’t be able to access their transaction history or other data after the pilot ends.

The company does plan to use Novi’s technology in future products, such as in its metaverse project, a company spokesperson said in an email.

Meta is going to shut down Novi service in September

“We are already leveraging the years spent on building capabilities for Meta overall on blockchain and introducing new products, such as digital collectibles,” Meta said in the statement. “You can expect to see more from us in the web3 space. As we are very optimistic about the value these technologies can bring to people and businesses in the metaverse.”

Meta launched the Novi pilot in October of last year amid scaled-back ambitions to dominate the crypto remittances space. Instead of a new Diem token Meta once backed, Novi ended up using Paxos Trust Co.’s USDP stablecoin. This will allow wallet users from parts of the U.S. and Guatemala to conduct transactions. Coinbase Global Inc. was safeguarding the funds.

When he testified before Congress in 2019, Zuckerberg tried to lay to rest any concerns that his company would support launching Diem — then called Libra — without regulatory approval.

Meta begins exploring efforts to support non-fungible tokens (NFT) on its sites.

Meta scrapped its original, stablecoin-oriented plans for Novi/Calibra after the company faced regulatory pushback over its ability to combat money laundering, protect consumers and monitor other security and financial risks. It scaled back and rebranded the effort along the way.

Meta’s ambitions for Diem, an association it was a part of to bring cheap and fast payments via crypto to the world, have been scaled back over the past few years amid regulatory scrutiny. David Marcus, who headed the Novi wallet effort, left last year. Diem’s assets were sold in January.

While scaling back this effort, Meta has been expanding its test to support nonfungible tokens. It is typically art like cute monkeys or penguins — on its sites.

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