Senators Against Facebook’s Digital Wallet NOVI

Facebook digital wallet NOVI, after a 2-year wait, has finally arrived in the US and Guatemala. This is a pilot test before the operation is extended.

NOVI will allow users to send and receive money safely and quickly without paying any additional fees. So far, the only cryptocurrency it supports is Paxos Stablecoin. At the same time, Facebook is partnering with Coinbase to become a partner in the fund-owning platform.

The primary purpose of the NOVI pilot is to test the characteristics and functionality of the platform. The platform will support Diem, which is a cryptocurrency from Facebook. It has not been released yet due to the expected approval of the SEC, but once it is approved, we can expect it in NOVI. The cryptocurrency had a former name Libra before it became an independent company.

It also received an inhomogeneity response from the public, especially after most of the partners, including Visa, PayPal, Mastercard, withdrew a few months after launch. However, the name change and the support of Facebook gave the project some relief.

One of the problems with cryptology is the fees that the exchange receives when they transfer it. Volatility means that it is almost impossible to get it for one price if you sell it once. Novi changes this and allows users to share stable coins without zero fees. The best part is that you can send money all over the world at no extra charge. Novi claims that the use of the program is as safe as possible.

Letter of Senators

For the security of the platform, the company has introduced a customer recognition policy. This means that when creating an account, you must first verify it with your ID. Without this procedure, the user will not be able to send or receive money.

Still, Senate Democrats called on Facebook to abolish the digital wallet. An open letter published by the states that the company is not trustworthy for cryptocurrency management.

According to the letter, Facebook is again implementing digital currency plans in aggressive times. The company’s goals are entirely inconsistent with the actual financial regulatory landscape for stable coins.

Senators say a company that fails to take risks and does not protect the safety of users as needed will not be able to become a credible cryptocurrency-type venture of a similar type. The existing ability to defend is entirely insufficient. Critics are urging the company to stop the project and not put it into operation.

Interestingly, however, Facebook’s position on this response is that several countries have recently sued and fined the company over data security issues.