December 10, 2023

Facebook receives criticism over crypto wallet Novi

Facebook receives criticism over crypto wallet Novi

A group of Democratic senators from the US Senate has asked Facebook to end the Novi Wallet beta program. In a letter to CEO Mark Zuckerberg, the group also asked him to pledge not to launch his digital currency, Diem.

The list of Democratic senators includes Brian Schatz, Sherrod Brown, Richard Blumenthal, Tina Smith and Elizabeth Warren, a perennial crypto skeptic. Senators believe that Facebook is pursuing its cryptocurrency plans within a strict timeframe, even though those plans are inconsistent with current financial regulation. They added that this applies not only to Facebook projects in particular, but also to stablecoins in general.

Facebook Security Standards

by doing to write He cites the recent Facebook scandal as one of the main reasons for criticism from senators. Earlier this month, Frances Haugen, a former Facebook employee, appeared on CBS News revealing a slew of internal documents. According to the whistleblower, Facebook conducted research that indicated its effect was harmful to teens. However, you have chosen not to respond.

“Unfortunately, Facebook’s decision to build a digital currency and payments network is just another example of a company that is fast moving and breaking things. You can’t trust Facebook to run a digital currency or payment system if its previous risk management and consumer protection skills prove utterly inadequate.” – Letter from Senators to Mark Zuckerberg

Crypto Wallet Novi

The message was sent the next day advertisement From the Novi pilot project written by Facebook in collaboration with Paxos and Coinbase. Facebook and Novi hope to address some of the challenges posed by current international payment systems. Ultimately, Facebook wants to use the digital wallet to help people send and receive money abroad safely and without fees.

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The pilot program has been launched in the United States and Guatemala to give people abroad the opportunity to send money remittances home cheaply. Another purpose of the pilot is to test the system’s operational capabilities, such as core functionality, compliance program and response from customer service, according to project leader David Marcus. Although Novi does not use Facebook’s own stablecoin Dim, it still faces opposition from political and regulatory bodies.