Facebook’s Novi Launches Pilot Program in Guatemala and US Using Pax Dollar
Novi, Facebook’s digital wallet, is now undergoing a test pilot operation in Guatemala and the United States. This “test pilot” will “test fundamental feature functions” and their operational skills in customer service and compliance,
Facebook’s Novi Launches Pilot Program
According to David Marcus, director of Facebook Financial. Marcus further noted that the remittance corridor between these two nations was critical because the majority of Guatemalans do not have access to banking institutions but do have access to a smartphone.
However, Diem, the once Facebook-backed cryptocurrency, is not being used in the trial. Instead, Novi opted to start the trial using pax dollar, a well-known stable coin backed by Paxos, a New York-based financial services firm. Coinbase was chosen as the pilot’s custodian, ensuring that customers’ money was kept safe through its custody platform.
Diem Use is still an option
Although the pilot program does not use Diem as the platform’s transactional asset, Marcus stated that Novi intends to use the coin in the near future. In response to this, he stated:
I want to be clear that we continue to support Diem and plan to launch Novi with Diem whenever it obtains regulatory permission and goes operational. Interoperability is important to us, and we want to do it right.
So Novi hasn’t given up on the project; it’s simply waiting for it to clear the regulatory barriers it’s faced since its beginning. This test pilot program, on the other hand, underlines Novi’s desire to position itself as a significant participant in the payments sector. Once Novi had a significant client base, Marcus indicated that this would be the primary emphasis and that the goal would be to give free person-to-person payments and earn from merchant interactions.