Meta Is Shutting Down Its Ill-Fated Crypto Venture, Novi

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According to Bloomberg, Meta is canceling the pilot for Novi, the company’s digital wallet and the lone remaining piece of its failed cryptocurrency project.

Novi’s website states that the wallet will be shut down on September 1st, 2022 and that customers should remove their assets “as soon as possible.”

Users will lose access to their accounts in September and will no longer be able to deposit funds into Novi beginning July 21st. If a user fails to withdraw their remaining amount, Meta will “attempt to transfer” their funds to the bank account or debit card linked to the service.

Last October, Meta launched Novi as a “small pilot” to customers in the United States and Guatemala. Novi was designed to facilitate rapid and free transactions utilizing the Meta-backed cryptocurrency Diem. Still, regulatory issues prompted the firm to join with Coinbase to use the Paxos stablecoin (USDP) conversely.

However, Meta stated that it would continue to support Diem in the future, but things began to fall apart at the end of 2021 and into 2022.

Members of the United States Senate have urged Meta to halt the Novi project shortly after its October 2021 launch, claiming that the company “cannot be trusted to control cryptocurrency.” One month later, David Marcus quit the company, the head of Meta’s cryptocurrency efforts. In addition, Diem sold its assets for over $200 million at the beginning of this year, thus ending the project.

The conclusion of Diem does not mean that Meta has abandoned the ambition of creating its digital assets and accompanying wallet. Meta spokesperson Lauren Dickson stated that the technology built in conjunction with the project will be used “on new products, such as digital collectibles,” as the company works to “construct the metaverse.”

Meta has already begun testing NFTs on Instagram and has recently added support for NFTs on Facebook for select US authors. The corporation is also apparently working on a non-blockchain digital currency called “Zuck Bucks.”

Last month, Meta CEO Mark Zuckerberg hinted at the development of a digital wallet to aid in the management and storage of digital clothing and accessories, art, films, music, experiences, virtual events, and more.

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