Meta to Shut Down Digital Wallet Novi Less Than a Year After Its Launch

Cryptocurrencies represent an internet-based medium of exchange that takes advantage of cryptographical functions in order to conduct financial transactions. They leverage blockchain technology to achieve decentralization, immutability, and transparency.

According to the latest crypto news, there are thousands of cryptocurrencies in existence. However, the most popular ones include Bitcoin, Ethereum, Ripple, Binance Coin, Bitcoin Cash, Tezos, Tron, Litecoin, and EOS, acquire more than 80% of the total market cap.

Decentralized cryptocurrencies such as Bitcoin, have one substantial advantage - no single authority can control them. Instead, they are governed by an algorithm that’s pre-programmed and defined. This takes away the human factor and makes the entire network transparent and immutable.

Cryptos can be sent directly between two parties, in a rapid and cheap process, compared to traditional bank transfers. Since there is no central authority or a middleman, the users can go through the process without having to worry about complying with different rules.

The Mark Zuckerburg-spearheaded company has decided to pull the plug on its largely disappointing crypto project.

The Failure Of The Novi Digital Wallet:

The Novi digital wallet will be shut down on September 1, announced the company behind the project – Meta (formerly Facebook). This comes after years of regulatory scrutiny and unsuccessful launch attempts.

The initial idea, started in June 2019, saw several company executives setting up a digital wallet (called Libra at the time) that wanted to operate a single global digital currency (similar to a stablecoin).

Given the firm’s previous hurdles with watchdogs, the plan faced enhanced scrutiny from different regulators almost immediately.
This led to multiple changes over the years, including the rebranding of Libra to Novi (last October), inspired by the Latin words novus (new) and via (way). The company wanted to clear up some of the confusion with the previous version.

Novi came as a beta version, in which Coinbase served as custodian, and users were able to send money “as easily as they send messages.”
Now, though, less than e year since the debut, Meta has decided to shut it down, as announced on Novi’s website, which reads that the wallet will “no longer be available for use after September 1.”
It also warns existing users to withdraw all of their funds stored on the platform before that date as they wouldn’t be accessible after it.

Upon the launch of the beta version, Novi came with a promise of a stablecoin called Diem. However, that idea also came to an abrupt end, at least from Meta’s oversight.
Several ex-developers decided to relaunch the project with a different name (Aptos) and even raised $200 million to build a blockchain network.

Written by: Jeevanantham G