Novi, a cryptocurrency wallet from Meta Platforms Inc. will allow users to send and receive money using WhatsApp, the social media giant’s messaging service.
Despite opposition from some US legislators to Meta’s digital currency offerings, the development of the social network giant’s digital wallet, Novi, continues apace.
On Wednesday, Stephane Kasriel, the president of Meta’s cryptocurrency and finance unit Novi announced the news on Twitter. He said that WhatsApp, Meta’s messaging subsidiary, had begun testing transactions through Meta’s Novi wallet.
However, the new function is available to a “limited number of people” in the United States. It allows users to send and receive money on WhatsApp. The pilot program allows users to complete transactions “instantly and without costs,” Kasriel said on Twitter.
According to him, using Novi has no effect on the privacy of WhatsApp personal messages and calls.
Since launching the Novi pilot in mid-October, Kasriel said Meta has tested and understood the features and capabilities that are “most relevant to consumers.” Novi does not affect the privacy of WhatsApp personal messages and calls, which are “always end-to-end encrypted,” he said.
On Twitter, Will Cathcart, the head of WhatsApp at Meta, also verified the news on Twitter. He stated that some U.S. customers can now send and receive money using Novi on WhatsApp.
“People use WA to arrange to send money to loved ones, and now Novi will make it secure, instantaneous, and fee-free,” he stated.
How to Make Payments Using WhatsApp
According to Novi’s website, making a payment on WhatsApp works similar to sending any other attachment. On Android, tap the paper clip icon. While iOS users tap the Plus icon, then select “Payment” from the menu that appears.
Surprisingly, there are no fees for sending or receiving money, no limits on how often payments can be sent. Furthermore, there are no fees for keeping a balance in your Novi account or withdrawing it to your bank account. Consequently, Payments are instant and in real-time.
In October, Meta, previously known as Facebook, announced the beginning of a digital currency pilot. The pilot was also in collaboration with Coinbase, a prominent crypto exchange, and Paxos, a stablecoin firm. The pilot began in the United States and Guatemala using Pax Dollar (USDP) which is a dollar-pegged stablecoin produced by blockchain trust business Paxos.
Legal Issues Facing Facebook’s Digital Currency
For several months, Meta Platforms has been working on the wallet software. However, the company has been postponing its global plans to launch a digital currency dubbed Diem due to legal worries.
The Open Markets Institute, a non-profit based in the United States, wrote to a number of regulators, including the Department of Justice. The organization claims that Meta may be “in the illegal business of taking deposits without a bank license.” Moreover, According to the organization, USDP is one of the minor stablecoins. However, it has “much less liquidity and usage” than the leading stablecoins like Tether (USDT) and USD Coin (USDC).
The Open Markets Institute letter stated, “There are several legal and regulatory implications for Facebook’s pilot that warrant particular attention by the agencies.”