Despite the high profile of cryptocurrency, especially on social media platforms and online forums, many people are still confused that it is not connected to anything tangible in the real world.
Unlike the pounds and pence of the British monetary system, crypto units are simply computer-generated files. However, even though it is not legal tender in the UK, it is a form of currency and was created to be a new type of money that could one day be as commonly used as cash or credit.
Twitter recently allowed users to tip and send not only using traditional payment methods, but Bitcoin as well.
And now, the messaging giant WhatsApp has rolled out a pilot program for sending encrypted payments on its platforms using the Novi wallet, reports the Coin Bureau.
The pilot project is still in its early stages and is only accessible to a limited number of users in the United States.
Novi uses USDP, a stablecoin from Paxos Trust Company. Users can deposit money with their credit or debit card, after KYC verification, convert their money to USDP, and then store and transfer USDP at no cost, according to Novi.
USDP will be sent and received in users’ WhatsApp chats, however, according to Facebook Financial (F2), the company eventually plans to use Diem as their preferred stablecoin on the platform.
Will Cathcart, head of WhatsApp, confirmed the news of the pilot program via Twitter to his 59,000 subscribers.
In October, when Meta, formerly known as Facebook, revealed the details of Novi’s launch, U.S. officials wrote a public letter to the company giant urging Mark Zuckerberg to reconsider his decision.
The letter, written by Senators Brian Schatz, Elizabeth Warren, Richard Blumenthal, Sherrod Brown and Tina Smith, said Facebook cannot be trusted to control a global stablecoin transfer platform.
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He said, “Time and time again, Facebook has made conscious business decisions to pursue actions that have harmed its users and society in general. Facebook cannot be trusted to run a payment system or digital currency when its current ability to manage risk and keep consumers safe has proven to be woefully inadequate. We urge you to immediately stop your Novi pilot project and make a commitment not to commercialize Diem.
There has not yet been a public response to the letter, and Meta’s Novi appears to be on course to potentially become a major player in the virtual payments arena.
DISCLAIMER: Nothing in this article should be read or understood as financial and / or investment advice. Readers should obtain their own financial advice from a suitably qualified independent financial advisor before making any investment decision.
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