Facebook Launches Pilot of Novi, Taps Coinbase as Custody Provider
Main page News, US Market, Facebook, Wallet, Stablecoins

Facebook has officially launched a pilot version of its digital wallet called Diem. The social network said in an announcement that the wallet will initially support only Pax Dollar (USDP). Eligible users — from Guatemala and select US states — could send & receive (and withdraw in local currency) the stablecoin only within the wallet with no support for turnover on the Ethereum blockchain.

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Users will also have to use government-issued ID to sign up, the announcement says. It remains unclear if Facebook plans to keep obligatory verification only for pilot testing. David Marcus, Head of Facebook Financial, said on Twitter that the company wants to test "core feature functions, and our operational capabilities in customer care and compliance."

"I do want to be clear that our support for Diem had not changed and we intend to launch Novi with Diem once it receives regulatory approval and goes live. We care about interoperability and we want to do it right," he added.

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Marcus did not specify on how long Facebook would pilot Novi saying that scaling of the wallet "will take time." Facebook also said all stablecoins on the Novi platform will be stored at Coinbase Custody with a $320 million commercial crime policy.

Earlier in September, Marcus revealed Facebook is struggling to solve a "trust deficit" that comes from Washington over its cryptocurrency-relatd initiatives. The Facebook Financial head also said that the social network's native stablecoin dubbed Diem is ready to come to market. He noted that the stablecoin is already regulated, and Facebook Financial is confident in its operational ability to exceed the "high standards of compliance."

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