Facebook urges U.S. senators to stop Novi wallet

Facebook has not announced the launch of a cryptocurrency wallet program and US lawmakers have already reacted badly to the initiative. Novi was announced Tuesday (19), and hours later a group of Democratic senators sent a letter Mark Zuckerberg Asks to stop the project.

“You can’t trust Facebook to manage a payment system,” lawmakers say. Senators Brian Scots, Sherrod Brown, Elizabeth Warren, signatories to the document argue that the site’s paid infrastructure plans do not fit into the real financial regulation landscape.

For now, the Novi wallet Facebook will not have its own currency, but will allow you to send and receive money for free from Stepcoin Paxos, which is held by Coinbase. But David Marcus, head of Facebook Financial, said the company plans to launch the portfolio and currency “once regulatory approval is forthcoming and live.”

Adding money is an important way to achieve financial inclusion. Today, we release a small pilot New Digital wallet usage in two countries – the United States and Guatemala. People can send and receive money instantly, safely, at no charge. 1/8

– David Marcus (DavidMarcus) October 19, 2021

Lack of confidence in Facebook

The pilot project is being carried out in the United States and Guatemala. (Source: Novi / Reproduction)Source: Novi / Reproduction

In 2019, Libra was summoned to the Zuckerberg House and Senate to explain the plan. The trial comes a year after the Cambridge Analytica scandal, and lawmakers have questioned the company’s credibility. The pound coin was dropped, but then reappeared Renamed as Time.

In the letter, the senators expressed the same concerns. “We urge you to immediately intervene with your novice pilot and ensure that Diem does not start in the market,” the congressional appeal said.

In early October, damage caused by Facebook was under investigation by the Senate Business Council. Senators listened to the testimony of Francis Hogan, who leaked dozens of internal documents on the social network, and planned legal plans to regulate the company.