Meta plans to shut down its Novi digital wallet on September 1, just eleven months after the company formerly known as Facebook launched.
The company announced the upcoming shutdown on Novi’s website, notifying customers that “the Novi pilot is ending soon” and will no longer be available after that date.
Meta said Novi users should withdraw their remaining sale from their Novi accounts before the shutdown date. People can either transfer their remaining balance to their bank account or withdraw the digital funds in cash, if applicable, the company said.
Novi users won’t be able to access their accounts after September 1, which means they won’t be able to retrieve account information like their transaction history.
The company released Novi last October in a so-called beta, or test, version with the help of cryptocurrency exchange Coinbase. Coinbase acted as Meta’s “custodial partner” on the project, providing digital storage and security technology to help the Novi app secure people’s funds, the crypto exchange said in an October release. business blog post.
At the time, Meta promoted Novi as an easy way for people to send and receive money using the Paxos Dollar, or USDP, stablecoin cryptocurrency. At one point, Meta planned to issue and accept the Diem cryptocurrency, which was backed by a Facebook-led association, in conjunction with the Novi wallet.
However, the Diem cryptocurrency project, overseen by the Meta-backed Diem Association, came under intense scrutiny from regulators, leading to its demise. Project lead David Marcus announced his departure from Facebook last November. In January, crypto-enabled bank Silvergate purchased all intellectual property and assets associated with Diem from the Diem Association, a major setback for Meta.
“While we gave positive feedback on the network design, it became clear from our dialogue with federal regulators that the project could not proceed,” Diem CEO Stuart Levey said in a statement. a press release at the time. “As a result, the best course of action was to sell the Diem Group assets, as we did today at Silvergate.”
Since then, stablecoins have come under scrutiny amid a broader cryptocurrency market downturn. May’s collapse of the UST, which lost its peg to the dollar, worried investors and regulators that certain types of stablecoins might not have the support to buy them back in the event of price action.
Meta shares were flat after hours trading at $160.00.