Facebook is all set to release Novi, its stable coin wallet, on which it has been working for years now.

The executive of Facebook, David Marcus talked about Novi through a  blog post. Facebook announced its crypto project first in a fanfare held in June 2019. Facebook had then announced that they were working on creating a digital currency that will be backed by a basket of fiat currencies and some of the biggest companies in finance and technology will be managing it. Last year, Facebook had pivoted its plan from global currency to a U.S. stable coin. 

Facebook's crypto project began as Libra. It was designed to be a digital currency that could be sent through the Calibra wallet. Initially, their goal wasn't to develop a stablecoin that could mimic the dollar's price. The asset was planned to be first managed by Libra Association members. Over time their plan had decentralized, just as other crypto projects have done.

"We’re a challenger in the payments industry, and we will offer free person-to-person payments domestically and internationally for people using the Novi wallet. We trust that people will prefer a service that is cost-free and more convenient to ones that are significantly more expensive and not consumer-centric." Marcus wrote.

Novi, after securing regulatory approval across the US, will offer free person-to-person payments, domestically and internationally. Through this move, David describes Facebook as “a challenger in the payments industry” while offering “cheaper merchant payments to businesses.”

“We can then branch out and offer a variety of other financial services in partnership with respected and well-regulated partners, and expand from there,” Marcus added. Facebook has declined to give any more details on the precise timing of the launch, and information on which coin or coins the wallet can hold. The Novi project is backed by 26 businesses and non-profit organizations, including Facebook itself. 

Rushali Das

CBW - External Analyst

INDIA