{"id":355264,"date":"2021-10-20T06:48:11","date_gmt":"2021-10-20T03:48:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/senators-pressure-facebook-to-immediately-discontinue-novi-wallet-pilot\/"},"modified":"2021-10-20T06:48:11","modified_gmt":"2021-10-20T03:48:11","slug":"senators-pressure-facebook-to-immediately-discontinue-novi-wallet-pilot","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/senators-pressure-facebook-to-immediately-discontinue-novi-wallet-pilot\/","title":{"rendered":"# Senators pressure Facebook to ‘immediately discontinue’ Novi wallet pilot"},"content":{"rendered":"

“# Senators pressure Facebook<\/a> to ‘immediately discontinue’ Novi wallet pilot <\/strong>”
\n<\/p>\n

Five Senators have called for the immediate closure of Facebook\u2019s new crypto wallet just hours after it was launched in partnership with Coinbase.<\/p>\n

Crypto skeptic Senator Elizabeth Warren was one of the five urging Facebook CEO Mark Zuckerberg to \u201cimmediately discontinue\u201d the project. In a letter<\/a> sent to Zuckerberg on Oct. 19, the five Democrat Senators wrote:<\/p>\n

\u201cGiven the scope of the scandals surrounding your company, we write to voice our strongest opposition to Facebook\u2019s revived effort to launch a cryptocurrency and digital wallet, now branded ‘Diem’ and ‘Novi,’ respectively.\u201d<\/p><\/blockquote>\n

Diem is Facebook\u2019s ambitious stablecoin project, formerly known as Libra, which has been the subject of heavy scrutiny and regulatory roadblocks for years resulting in a number of key partners pulling out of the venture. Novi is the firm\u2019s crypto wallet, designed to hold the Diem token and other stablecoins.<\/p>\n

Novi launched a pilot in the U.S. and Guatemala on Oct. 19 in partnership<\/a> with Coinbase which will provide crypto custody services. The pilot will enable users to acquire, send and receive Paxos Dollars (USDP) through their Novi account. <\/p>\n

On Oct. 20, Coinbase CEO Brian Armstrong congratulated<\/a> co-creator and a board member of Diem David Marcus, adding \u201cit takes a lot of perseverance to ignore the haters and ship.\u201d<\/p>\n

The shot across the bow came from the office of Senator Brian Schatz and was co-signed by Tina Smith, Richard Blumenthal, banking committee chairperson Sherrod Brown, and Elizabeth Warren.<\/p>\n

They stated that Facebook has repeatedly made conscious business decisions to continue with \u201cactions that have harmed its users and the broader society,\u201d adding:<\/p>\n

\u201cFacebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient.\u201d<\/p><\/blockquote>\n

Related:<\/em><\/strong> <\/em><\/strong>One currency to rule them all: Facebook\u2019s Diem has global ambitions<\/em><\/strong><\/p>\n

In a letter<\/a> from the company announcing the pilot, Marcus stated \u201cWe intend to migrate Novi to the Diem payment network once it receives regulatory app<\/a>roval.\u201d<\/p>\n

The firm has far loftier ambitions than just a crypto wallet and stablecoin in the digital space. On Oct. 17 Facebook revealed plans to create 10,000 high-skilled jobs in the EU over the next five years to build its own metaverse.<\/p>\n<\/div>\n