Meta pulls the plug on its crypto payment wallet, Novi – TechCrunch

Three years after Facebook announced its fateful push for cryptocurrency, also known as the Libra project, the technology giant has signaled another slowdown in its activity – and announced on Friday that Novi, the pilot for digital wallet payment it launched in October last year, will end on September 1st.

In a statement issued to CoinDesk, the technology giant now known as Meta indicated that it plans to reuse digital wallet technology (neé Calibra) for future products, including those related to its eponymous focus on “metavers” development. Although it is not clear exactly what Meta may have in mind for reusing Novi technology.

Senior Meta leaders have spoken up the meta-verse as a great opportunity for digital commerce. Admittedly, they have also warned about the long time scales that will be required to develop the coveted market – suggesting that it could take decades.

In recent months, the company has also tested support for digital collectibles (also called NFTs) – so Meta, which has its own digital wallet infrastructure, can support a broader boost to non-fungible token trading if it decides that there is enough money to be made. that front (but again, NFT trading volumes are steeply down compared to last year – as digital collectibles are encrypted).

Novi pilotsMeanwhile, was much more basic: It made possible testers to make fee-free, instant personal payments via the Novi app, using a stablecoin as a transfer medium – with Meta’s marketing claiming that their technology made sending money “as easy as sending a message”. The pilot was limited to users in the United States and Guatemala.

A limited integration with WhatsApp was also rolled out in December last year for a subgroup of US users of the Facebook-owned messaging platform.

However, the wallet project was generally hampered by the fact that Meta’s crypto ambitions had never turned out as hoped – in the face of regulatory push-backs and withering support.

After years of governance scandals, it is fair to say that Facebook’s reputation problems hindered its ability to “move fast and break things”, as crypto increased its efforts to address regulatory concerns, around issues such as money laundering and currency volatility.

Therefore, at the launch, Novi was already reduced compared to the original ambition – involving another stablecoin, USDP, instead of the coin associated with the Libra project (Diem), for example.

More recently, writing on the wall of the digital wallet included the departure of Meta’s best crypto manager: David Marcus, who had led Novi, and who announced his departure in November.

Then, in January, the Libra / Diem Association, also known as the Meta consortium originally set up to support and manage the crypto project, announced that it was in the process of being wound up – selling off the assets of Diem stablecoin. Aka: The game is over.

A note on the Novi website informing users of the impending end of the payment pilot gives no color or context to Meta’s decision to pull the plug – with the technology giant just writing:

«Novi will no longer be available for use after 1 September. Before Novi disappears, we have made it easy for you to get the remaining balance and download your Novi information. “

For example, there is no mention of the broader cryptocurrency free fall market that has led to dramatic sales in recent months and increased scrutiny of stack coins due to concerns about stability. Nor is there increasing international attention to crypto-regulation. But changing market conditions are likely to cool Metas interest rates.

Meta was contacted for comment.