Meta Kills Crypto Payments Wallet, Novi
It has been about three years since Facebook announced its global cryptocurrency project, Libra. Since then, the project progressed through several stages of development and decline, until it finally became clear that the project could not successfully exist due to regulatory restrictions. đ In current reality, Mark Zuckerberg is forced to close another project â a crypto payment wallet called Novi â due to this story.
In October 2021, Mark Zuckerberg announced the launch of a cryptocurrency-based payment system pilot. A few days ago, it became known that the project would end on September 1 and would not continue due to several factors.
The Novi website states that withdrawal of user funds will end on September 1, 2022
What happened to Meta's crypto brainchild?
Meta plans to incorporate Novi developments into upcoming company products and services in the metaverse, according to published information. đŚ However, it's not clear yet which crypto payment system technologies will be integrated into the Meta ecosystem's metaverse.
The Novi, meanwhile, was a lot more basic: it enabled users to make fee-free, instant personal payments via the Novi app, using a stablecoin as the transfer medium. The initial features of the pilot version of the crypto payment system were impressive. However, many features were then limited or removed from the project due to regulatory pressure. This was due to inconsistency with current financial laws in the U.S. and several countries where Novi could be used.
For example, the developers originally planned to integrate their own cryptocurrency Libra, into the crypto payment wallet Novi. However, they abandoned this idea, because the Libra project was also suspended. đź
Global difficulties forced developers to pause.
What does the news mean for investors?
Changing market conditions are surely further cooling Metaâs interest. Such events may indicate that the company is less interested in cryptocurrency projects amid the lack of progress in the regulation of this industry. â Some experts believe that the creation of the metaverse, which is the basis of the idea of Meta, is impossible without Web3 and blockchain. Therefore, current developments may slow down progress in developing new products related to the metaverse.
Nevertheless, this is unlikely to affect the company's share price in the short term. Since we are talking about the closure of a project that had little impact on operating costs and did not generate revenue for the company. đ
In the long term, this could mean a slowdown in the progress of crypto projects and the meta universe, which could have a negative impact on share prices.
Current price of Metaâs shares
A monthly chart of $FB.OQ as of the end of Wednesday 06/07/22
The value of Meta shares continues to decline for the second week in a row amid negative news and the macroeconomic situation.
Conclusion
The Novi wallet project was generally hampered by Metaâs crypto ambitions, never having panned out as hoped â in the face of regulatory push-back and withering support.đź
Following years of governance scandals, itâs fair to say that Facebookâs reputational troubles impeded its ability to âmove fast and break things'. Regulators are increasingly concerned about issues such as money laundering and currency volatility because of crypto.
Meta will soon stop generating ideas in the crypto world that it is not going to implement. Therefore, investors should consider this in their investment strategies and trading tactics.
Summary
- Meta is pulling the plug on its crypto payments wallet, Novi
- The tech giant thatâs now known as Meta suggested it has plans to repurpose the digital wallet technology for future products
- Meta will soon stop generating ideas in the crypto world that it is not going to implement
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