A new pilot program partnering telecommunication company WhatsApp and Meta Platforms’ (NASDAQ:FB) Novi crypto wallet, has investors buzzing today. A limited number of U.S. WhatsApp users can now send and receive money to family and friends as simply as they can send a message. The move could be a big step toward the all-digital future Meta is rapidly working to ensure.
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So, what should investors know about this big move?
Well, to start, Novi executives have spoken out on this exciting new venture. Indeed, Novi VP Stephane Kasriel tweeted out on the importance of this latest step.
“We often hear that people use WhatsApp to coordinate sending money to loved ones, and Novi enables people to do that securely, instantly and with no fees. Payments will appear directly in people’s chat.”
This is in line with Meta’s new perspective on decentralized transactions. In October, then-crypto head David Marcus revealed a consolidation of the company’s financial instruments as part of Novi. However, this is not a new concept for the company. It already offers traditional peer-to-peer payments via Facebook and its accompanying Messenger app, as well as on Instagram.
If you recall, Novi is actually Meta’s second attempt at a digital wallet. Calibra, Meta’s first effort at the concept, unceremoniously fizzled out after facing scrutiny from legislators and financial regulators. Since the rebrand, Novi also shifted the primary stable coin backing the application from Diem (CCC:DIEM-USD)to Pax Dollar (CCC:USDP-USD).
Let’s see what the major takeaways are for this latest development.
8 Things to Know About WhatsApp’s Novi Crypto Integration
- As per a tweet from Kasriel, the Novi interface will not affect WhatsApp’s end-to-end message encryption.
- Currently, the pilot program is limited only to the United States.
- It’s been stated that only a limited number of WhatsApp users can use the payment features. However, it’s unclear what system is used to determine who is granted access.
- Meta was initially planning on moving ahead with Diem but launched with USDP in October to many investors’ surprise.
- However, Novi’s website mentions that it does plan on eventually transitioning to Diem.
- The current stable coin backing the application, USDP, is actually a collaboration between blockchain company Paxos and well-known crypto exchange platform Coinbase (NASDAQ:COIN).
- Unlike independent digital assets, USDP tracks the value of the U.S. dollar, making it far more stable.
- Meta first launched Novi in October in the form of a mobile app. Currently, it is still only available in the U.S. and Guatemala.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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