Facebook’s Crypto Wallet Gets Concerns from US Lawmakers

The social media giant will launch the pilot of its crypto wallet named Novi. 

US Lawmakers Raise Concerns Against Facebook’s Crypto Wallet

In a blog post on Tuesday, David Marcus, head of Facebook’s crypto wallet, announced that the company had started the pilot in parts of the US, as well as Guatemala. Some US lawmakers have raised concerns about Facebook’s plan to launch the pilot of Novi, facebook’s crypto wallet. Senators of the Democratic Party, Brian Schatz, Sherrod Brown, Richard Blumenthal, Elizabeth Warren, and Tina Smith wrote a letter to the CEO of Facebook Mark Zuckerberg. They urged the company to scrap its pilot project immediately. 

“Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient,” the letter stated.

After this letter, both The Facebook-led crypto consortium and Diem made some explanations. “The lawmakers misunderstood the relationship between Diem and Facebook.” stated by Facebook and “Diem is not Facebook. We are an independent organization, and Facebook’s Novi is just one of more than two dozen members of the Diem Association. Novi’s pilot with Paxos is unrelated to Diem.” written by Diem. 

Novi Wallet is not Reliable

This cryptocurrency project is unveiled by Facebook in mid-2019. However, they immediately started to face regulative backlash around the world. Since Facebook is a very big company and its user base is huge, the monetary regulators are primarily concerned about the destabilization of the monetary system

“Facebook is once again pursuing digital currency plans on an aggressive timeline and has already launched a pilot for a payments infrastructure network, even though these plans are incompatible with the actual financial regulatory landscape,” the lawmakers’ letter added.

As a whistleblower from Facebook said that the company cares more about profits than user safety, the company is getting more adverse reactions from all over the world. 

See also: Record-breaking £180 million cryptocurrency operation in the UK

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