Democrats urged to wind up Facebook crypto wallet pilot program
Facebook announced the launch of a pilot program for its own Novi cryptocurrency wallet in the United States and Guatemala two years after the announcement. However, it could be thwarted by US lawmakers putting pressure on the company.
Novi offers customers the ability to trade USDP stablecoins backed by US dollars, which Paxos is responsible for issuing. As part of the launch of Novi, Facebook previously announced a partnership with the largest American crypto exchange Coinbase, which took over the role of the custodian of the company's wallet.
Now that Novi's full-scale launch is close, a group of Democratic senators is outraged by Facebook's cryptocurrency wallet pilot program. Brian Schatz, Richard Blumenthal, Sherrod Brown, Tina Smith, and the notorious Elizabeth Warren, who has repeatedly expressed her disapproval of the crypto industry, announced the need to immediately terminate the Novi project and complete work on the Diem team's own stablecoin.
The reason for this, according to the senators, was the inability to trust the user data of the social network Facebook. In a letter addressed to Facebook, politicians noted that the scale of consumer data security scandals undermined trust, and the developers failed to explain how Diem and other cryptocurrency projects of the company would discourage illegal money transfers and criminal activity within the product and save customers' money. in safety.
The backlash from the government to Facebook's initiatives in the digital asset industry was clearly manifested in the days of the Libra project, which later changed its "image" and name to Diem.
Apparently, the senators' words about the insufficient level of data security are backed up, including by the recent scandal around the information about the company's attitude towards users, made public by the former employee Frances Haugen.
At the same time, the head of the Novi development team, David Marcus, said that they will be ready to implement the cryptocurrency wallet into the Diem payment network as soon as it is approved by the country's financial regulators. But now, against the backdrop of such a reaction from a group of lawmakers, the question of the further fate of the Facebook wallet remains open.
Despite the news, Coinbase CEO Brian Armstrong cheered Novi developers on the pilot, stressing that the team "will need the persistence to ignore the haters."
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