Facebook works with Coinbase to start his Novi cryptocurrency wallet, US regulating authorities defend themselves

Veröffentlicht:

Von:

Facebook did not give up in his endeavor to use the power of the blockchain to expand into the financial transaction. After the failure of his libra project, the social media giant announced a partnership with coinbase to introduce its Novi cryptocurrency wallet.

The launch is still in the test phase. After a Official statement by David Marcus, Head of Novi, Facebook starts a Novi pilot project that is available to a small group of people who want to test the robustness of his service.

Facebook, Paxos and Coinbase: three heavyweights combined to serve the unmarried one

The Novi service is available for the United States (with the exception of Alaska, Nevada, New York and the American Virgin Islands) and Guatemala, a small Latin American country in Central America.

Novi enables users to send and receive Pax dollars, a stable coin regulated by the USA, which is covered by barres reserves and barequivalent. The funds are kept by Coinbase Custody and the users can immediately exchange their pax dollars in Fiat currency.

Facebook explains that it has decided to launch its cryptocurrency onto the market in order to operate the population without bank details, a segment of 1.7 billion people worldwide. Facebook believes that the use of Novi could offer an efficient, inexpensive and successful alternative for transfers and everyday financial transactions.

In addition, Facebook emphasized that they did not give up their dream of starting a separate blockchain. Facebook also assured that in addition to the technical aspects, they work to meet all legal requirements in order to get green light from the US authorities and to migrate all their services on Diem, a native blockchain that was born as a kind of evolution by Libra .

regulators vs diem

The path of Facebook on the cryptocurrency highway was bumpy. His main karma has been his own reputation so far. The supervisory authorities have alerted the scandals around Cambridge Analytica and other massive data leaks who wanted to prevent any attempt to couple a mention of Facebook with a mention of financial services.

Facebook is aware of this, and in the same official message they assured that Facebook and Novi accounts are run separately and that the wallet is focused on safety.

We know that data protection for Novi customers comes first, so it will always come first for us. We prioritize the security and data protection of personal data by encrypting sensitive financial information ... If we find that a transaction is not authorized, we will reimburse the full amount to a person's novel credit. The Novi accounts of people and the Facebook accounts are separated.

But that was some regulatory authorities such as not enough anti-crypto Elizabeth Warren and a committee of 4 other senators who asked Facebook a few hours after the announcement to cancel the project.

according to a letter The Senators Facebook for not trustworthy and the introduction of Diem could be risky for the financial stability of the United States:

"Unfortunately, the decision of Facebook to do a digital currency and payment network is just another example of the fact that the company" goes quickly and breaks things "(and in too many cases leads the congress to be misleading) ... a payment system or a digital currency if its existing ability to manage risks and ensure the security of consumers has been completely insufficient. We urgently ask you to stop your Novi pilot and commit yourself not to bring Diem onto the market.

The Diem Association counters with

Cryptopotato could not find out who this senior supervisory authority was, but they were certainly not allowed to be friends with Ms. Warren.

.