10 dec 2021-04

WhatsApp Launches Crypto-powered Payments Novi In The US

WhatsApp ventures into instant cryptocurrency payments, launching a trial in the US as a first step. Would it be a welcoming signal from the US government?

In October, Facebook (Meta now) launched “a small pilot” of Novi wallet in the United States and Guatemala, with an aim to allow family members to send remittances across borders. Now, it commences a wilder trial– offering Novi money transfers via WhatsApp to a limited number of users in the US.

Novi co-founder David Marcus has mentioned this development before. He planned to expand Novi payments to all Meta’s subsidiaries, including Facebook, Instagram and WhatsApp. 

The payment method is as simple as sending out a regular attachment in a conversation by tapping the plus icon. Users can then send and receive payment in USDP, which is equivalent to USD. 

However, every coin has two sides. Users will possibly no longer have to suffer from any incurring fee after the official roll out of Novi payment but they may become more vulnerable to e-commerce advertisements. 

US Acknowledging The Use Of Stablecoins? 

Indeed, Meta has announced its cryptocurrency blueprint as early as in 2019, proposing its plan to develop a Facebook digital wallet named Calibra. The cryptocurrency in use would be Diem, which was Libra in the beginning. 

However, Novi has now partnered with Coinbase and adopted the stablecoin, Paxos instead. Coinbase would be the custody partner which manages the funds for the pilot scheme.     

This act could show the US government’s acknowledgement to the use of stablecoins as a medium of exchange, which is a milestone to the development of the crypto industry.