Senators pressure Facebook to ‘immediately discontinue’ Novi wallet pilot

Senators pressure Facebook to 'immediately discontinue' Novi wallet pilot

Five senators called for the immediate closing of Facebook’s crypto wallet, just hours after it launched in partnership to Coinbase.

Senator Elizabeth Warren, a crypto skeptic, was among the five who urged Mark Zuckerberg to “immediately cease” the project. The five Democrat Senators addressed a letter to Zuckerberg Oct. 19.

“Given the scale of the scandals surrounding you company, we write in opposition to Facebook’s renewed effort to launch a digital wallet and cryptocurrency, now called ‘Diem’ or ‘Novi’, respectively.

Facebook’s ambitious stablecoin venture, Diem, was formerly known under the name Libra. It has been subject to heavy scrutiny and regulatory hurdles for many years, leading to a number key partners leaving the venture. Novi is the firm’s crypto wallet that holds the Diem token as well as other stablecoins.

Novi has launched a pilot program in the U.S.A and Guatemala with Coinbase, which will offer crypto custody services. Users will be able to send, acquire and receive Paxos Dollars USDP through their Novi account.

Brian Armstrong, Coinbase CEO, congratulated Diem David Marcus co-creator. He also said that it takes perseverance to ignore the haters.

Tina Smith, Richard Blumenthal and Elizabeth Warren co-signed the shot across the bow.

They added that Facebook had made numerous conscious business decisions to continue “actions that have caused harm to its users and the wider society,”

Facebook is not trusted to manage a digital currency or payment system, as its ability to manage risks and keep customers safe has been completely compromised.”

Related: Facebook’s Diem is a global currency

Marcus wrote in a letter announcing the pilot that “we intend to migrate Novi into the Diem payment system once it receives regulatory approval.”

The company has much greater ambitions than a stablecoin and crypto wallet in the digital space. Facebook announced plans to create 10,000 jobs in Europe over the next five year to create its own metaverse.

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