According to Bloomberg, Meta has decided to stop the pilot program for Novi, the company’s digital wallet and the final component of its difficult cryptocurrency project. Meta requests that users take their assets “as quickly as possible” from the wallet before it shuts down on September 1st, 2022, according to Novi’s website.
Users will lose access to their accounts come September, and will no longer be able to add money to Novi starting July 21st. If someone forgets to withdraw their remaining balance, Meta says it will “attempt to transfer” their funds to the bank account or debit card added to the service.
Meta rolled out the “small pilot” of Novi to users in the US and Guatemala last October. Novi was originally built to support fast and free transactions using the Meta-backed cryptocurrency, Diem, but regulatory challenges forced the company to partner with Coinbase to use the Paxos stablecoin (USDP) instead. While Meta made it clear that it still planned on adding support for Diem at a later date, things started to fall apart (more than they already were) at the end of 2021 and into 2022.
Before Facebook’s parent company was known as Meta, Diem was also known by another name: Libra. The cryptocurrency project faced scrutiny over its ties to Facebook, so much so that the independent group behind Libra rebranded the project to Diem in an attempt to distance itself from the social network.
Members of the US Senate called on Meta to shut down its Novi project shortly after its October 2021 launch, citing that the company “cannot be trusted to manage cryptocurrency.” David Marcus, the head of Meta’s cryptocurrency projects, left the company one month later. Diem sold its assets for about $200 million at the beginning of this year, marking an end to the project.
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