Facebook is currently running a test pilot program of its digital wallet, Novi, in the U.S. and Guatemala.
In a statement, the head of Facebook Financial, David Marcus, said that the remittance corridor between these two countries was very crucial because of the lack of access to financial services most Guatemalans experience even though they have access to smartphones.
He further stated that the test pilot would not only test core feature functions but also test their operational capabilities in customer care and compliance.
It was however revealed that the pilot is using pax dollar – which is an already established stablecoin that is supported by a New York-based financial services company called Paxos – instead of diem which is a cryptocurrency that was formerly backed by Facebook.
Also read, Can Facebook Libra Project be Trusted to Run a Banking System?
To keep users’ funds secure via its custody platform, Coinbase was selected as the custodian of the funds.
This test pilot program shows that Novi aims at establishing itself as a major player in the payments market as its major objective is offering free person-to-person payments as well as profit from merchant transactions once it has a solid customer base.
Despite the pilot program using another transactional asset for its platform instead of diem, Novi still plans on leveraging diem in the near future, as stated by Marcus, “I do want to be clear that our support for Diem hasn’t changed and we intend to launch Novi with Diem once it receives regulatory approval and goes live. We care about interoperability and we want to do it right.”
This means that Novi still has its eyes on diem and is only waiting for it to scale the regulatory challenges it has faced since its creation.
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