Facebook's digital currency wallet Novi is about to launch

According to David Marcus , the leader of Facebook's digital currency project , Facebook is ready to launch the digital currency wallet Novi .

Marcus said on Wednesday that Novi, a digital wallet integrated into the Facebook app, will be launched soon.

Novi will support person-to-person domestic and international payments , and calls Facebook a "challenger in the payments industry . "

According to the editor, the project has obtained licenses and regulatory approvals in most states in the United States. However, Facebook did not disclose more details about the official launch time and which currencies the wallet will support . It is reported that it will include Diem, which was also a project initiated by Facebook.

Marcus, who is currently the head of Facebook's financial services division F2, is also one of the co-founders of Diem . The Diem project was announced in 2019 and initially sought to create a synthetic cryptocurrency backed by a basket of currencies , with the support of 26 businesses and non-profit organizations .

Diem changed its development priorities to focus on launching a single stablecoin backed by the U.S. dollar after regulators raised concerns that it could threaten monetary stability and facilitate bad practices such as money laundering .

But stablecoins are also now facing greater regulatory scrutiny as the total value in circulation has more than quadrupled this year to $ 120 billion.

In July this year , including US Treasury Secretary Janet   Senior U.S. officials, including Yellen, said they expect to release recommendations in the coming months and raised potential risks that stablecoins pose to consumers , the financial system and national security .

Meanwhile, according to a report earlier this week, Diem has struggled to shake off regulatory headwinds, prompting Novi to explore partnerships with other stablecoins . Novi is said to have held talks with stablecoin providers Circle and Paxos .

Marcus believes that stablecoins and their wallets could potentially detect illegal activity “more effectively” than traditional financial systems because additional regulatory controls could be built into them.

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