Global: Meta to shut down Novi wallet

Both the Novi app and Novi on WhatsApp will no longer be available, and all accounts will be closed on the 1st of September 2022, with the firm advising all users to withdraw their funds “as soon as possible”. From the 21st of July 2022, customers will not be able to add money to their accounts.

Meta launched the Novi pilot in October of last year, backed by USDP (Pax Dollars) rather than Diem stablecoin, in partnership with Coinbase and Paxos. In recent years, Meta exec Mark Zuckerberg has been grilled by Congress during hearings in efforts to regulate big tech. The Diem project (originally named Libra) was hit by multiple setbacks throughout its existence due to significant attention Facebook was receiving around antitrust concerns.

The closing of Novi can be interpreted as a move away from cryptocurrency for Meta, though there is still an indication that it will use the technology from the financial app in future projects.

A Meta spokesperson stated: “We are already leveraging the years spent on building capabilities for Meta overall on blockchain and introducing new products, such as digital collectibles. You can expect to see more from us in the Web 3.0 space because we are very optimistic about the value these technologies can bring to people and businesses in the metaverse.”

The fall of Novi follows the downturn in crypto trends and indicates an upcoming crypto winter. Recent market conditions have led to multiple crypto firms to lay off employees, such as BlockFi, Coinbase, and Bitpanda