Meta to shut down its cryptocurrency project in September

Meta has announced that it would be shutting down its Novi pilot on September 1. Novi is a money transfer service that uses the company’s own cryptocurrency digital wallet. Novi had earlier used Meta’s own cryptocurrency digital wallet to provide transfer services. It applies Novi-related technologies to the Metaverse and other products.

Meta

Meta’s cryptocurrency project has been hit with attacks from the U.S. Congress in times past. The company is now finally taking the bold step by shutting down the rest of the project.

According to Meta spokesperson, the company does plan to use Novi’s technology in future products, such as in its original universe project. According to Meta, both the Novi app and Novi on WhatsApp will no longer be available. Starting July 21, users will no longer be able to add funds to their accounts. The company advises that users withdraw their balance as soon as possible. After the test period, users will not be able to access their transaction history or other data.

WhatsApp to start supporting Novi integration for peer to peer payments
WhatsApp intends to start supporting Novi integration for peer to peer payments

“We’ve spent years building capabilities for Meta as a whole on the blockchain and launching new products such as digital collections,” Meta said in the statement.

“You can expect us to see more in the web3 space as we are very optimistic that these technologies can bring value to people and businesses in the metaverse.”

Meta Crypto Project Hits A Brick Wall

Last October, Meta launched the Novi pilot in an attempt to break into and even dominate the crypto remittance space. Novi uses Paxos Trust Co.’s USDP stablecoin to allow wallet users in parts of the United States and Guatemala to trade, rather than a new Diem token that Meta once supported. Coinbase Global Inc. is responsible for securing these funds. Zuckerberg has been trying to allay concerns about him during his congressional testimony in 2019 because the company launched Libra without regulatory approval.

At the moment, Meta’s ambitions for Novi are fading, the crypto market boom is also waning. Also, key players such as Celsius Network and Three Arrows Capital are facing liquidity difficulties.

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