Last Remnant of Facebook’s Crypto Project Closes September 1st

The Diem logo, formerly known as Libra, is displayed on a smartphone screen with the Facebook logo in the background.

Pavel Gonchar | SOPA images | LightRocket via Getty Images

Meta plans to close its Novi digital wallet in September. 1, just eleven months after the company formerly known as Facebook introduced it.

The company announced the upcoming closure Novi websiteinforming customers that “The Novi Pilot is ending soon” and that it will not be usable after that date.

Meta stated that Novi users must withdraw the remaining balance from their Novi accounts before the closing date. People can either transfer the remaining balance to their bank account or withdraw the digital funds as cash, if applicable, according to the company.

Novi users will not be able to access their accounts after September. 1, which means they will not be able to retrieve account information such as transaction history.

The company released Novi in ​​October last year in a so-called beta or test version with the help of a cryptocurrency exchange. Coinbase. Coinbase acted as Meta’s “custodial partner” in this project, providing digital storage and security technologies to help the Novi app protect people’s funds, the cryptocurrency exchange announced in October. corporate blog post.

At the time, Meta introduced Novi as an easy way for people to send and receive money using the Paxos Dollar, or USDP, stablecoin cryptocurrency. At one point, Meta planned to issue and accept the Diem cryptocurrency, which was backed by a Facebook-led association, in combination with the Novi wallet.

However, the Diem cryptocurrency project, controlled by the Meta-backed Diem association, faced scrutiny from regulators, leading to its demise. Project Manager David Markus, announced his departure from Facebook last November. In January, crypto-focused bank Silvergate bought all Diem-related intellectual property and assets from the Diem Association, a major setback for Meta.

“While we have received positive substantive feedback on the design of the network, it is nonetheless clear from our dialogue with federal regulators that the project cannot move forward,” said Diem CEO Stuart Levy. statement at that time. “As a result, the best way forward was to sell Diem Group’s assets, as we did today with Silvergate.”

Since then, stablecoins have come under scrutiny amid a broader downturn in the cryptocurrency market. May collapse of the USTwhich has lost its peg to the dollar has worried investors and regulators that some types of stablecoins may not have the backing needed to redeem them in the event of a run.

Meta shares were unchanged after the close of trading at $160.00.