Home Cryptocurrency Mark Zuckerberg, Facebook Quietly Abandon Their in-House Venmo

Mark Zuckerberg, Facebook Quietly Abandon Their in-House Venmo

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Mark Zuckerberg, Facebook Quietly Abandon Their in-House Venmo

There is no official announcement.

Even if there were, the announcement would not have gone unnoticed: Mark and Zuckerberg and his company Meta Platforms (META) – Get Meta Platforms Inc. Reportsthere is no longer a digital payment program.

Zuckerberg’s timing was good: the crypto industry is currently experiencing an unprecedented crisis of confidence marked by falling digital currency prices. Bitcoin, the king of cryptocurrencies, has lost 71.3% of its value since hitting an all-time high on Nov. 10, according to data from CoinGecko. Ether, the second-largest cryptocurrency by market capitalization, is also down 78% from its all-time high in November. Overall, the crypto market lost over $2.1 trillion in eight months.

In addition to the drop in cryptocurrency prices, there is concern about the liquidity crunch currently affecting many well-known crypto companies.In fact, the May debacle of sister tokens Luna and UST just led to the bankruptcy of hedge fund Three Arrows, which had borrowed large sums from a number of cryptocurrency lenders such as Voyager Digital (VYGVF) – Get Voyager Digital Ltd report, Babel Finance and BlockFi invest in Luna. Faced with default payments from Three Arrows Capital or 3AC, these companies are currently in huge financial trouble and some have had to suspend withdrawals. Basically, their customers can no longer use their money.

Novi will close on September 1st

So in this case, Zuckerberg and Meta, the parent company of Facebook, Instagram, and WhatsApp, are ditching Novi, a service that was supposed to allow people to send money to each other using cryptocurrencies.

The announcement was made on a website dedicated to Novi.

“The Novi pilot is coming to an end,” the company wrote. “Novi will no longer be available after September 1.”

“We made it easy for you to get your balance and download your Novi information before Novi leaves.”

The social media giant then explained to users how to withdraw funds before Novi came to a close.

“It is important that any balance in your Novi account be withdrawn by this date. You may choose to transfer the Novi balance to your bank account or withdraw it as cash where applicable.”

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It warns: “After September 1, 2022, you will no longer be able to log into your Novi account and you will not be able to access this information.”

Facebook launched Novi last October with the help of cryptocurrency trading platform Coinbase (COIN) – Get the Coinbase Global Inc report In beta form, a test, should then be extended. Coinbase brings a digital storage and technology to protect user funds.

“Facebook has selected Coinbase as the escrow partner for its pilot Novi, a new digital wallet that enables people to send and receive money abroad instantly, securely and for free,” Coinbase said in a blog post last October indicated in.

How it works: Novi ambitiously allows users to send money to each other via an app or via Facebook Messenger and WhatsApp with the help of Pax Dollar (USDP), a dollar-pegged stablecoin. Basically, 1 USDP is equal to 1 US dollar. There is no volatility.

“Novi users who can participate in the pilot can earn Pax Dollar (USDP) through their Novi account, which Novi will hold in Coinbase Custody. Novi users will be able to instantly transfer USDP between each other,” the company explained. time.

Facebook initially planned to issue and accept Diem/Libra, a stablecoin the company intended to create with a group of financial institutions, but Diem/Libra was opposed by regulators who feared it would disrupt the financial system. For example, regulators are also concerned that Diem/Libra could become a means of money laundering and become a competitor to fiat currencies like the U.S. dollar. The outcry prompted Facebook to drop Diem/Libra entirely in January.

Diem CEO Stuart Levey wrote in a Jan. 31 statement: “While we have had positive and substantive feedback on the design of the network, it is clear from our conversations with federal regulators. , the project could not move forward. “So the best way forward is to sell the Diem Group’s assets, as we have done with Silvergate today” (SI) – Obtain Silvergate Capital Corporation Class A Reporta cryptocurrency-focused company.

Abandoning Novi appears to overshadow Meta’s ambitions in the cryptocurrency space, but the company is still working on a potential virtual currency that could be used in the Metaverse, according to the Financial Times. The metaverse is a virtual world in which we are asked to interact with our avatars and through objects. Technologies such as virtual reality headsets.

“We have notified Novi pilot participants that we will now conclude the pilot program,” a Meta spokesperson told TheStreet in an emailed statement. “We’ll take the technology we’ve developed and what we’ve learned from this program into future products across the company as we focus on building for Metaverse.”

“We’ve been leveraging our overall ability to build Meta on the blockchain over the years and launch new products such as digital collectibles. You can expect to see more from us in the web3 space as we understand the value these technologies can bring Very optimistic for the people and businesses in the metaverse.”

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