WhatsApp launches instant payments in cryptocurrencies digital wallet
WhatsApp launches a new pilot that allows people in the United States to send and receive money from a chat using cryptocurrencies
The news was known that WhatsApp will allow a limited number of people to pay with cryptocurrencies . Although it is still a pilot test, the feature is powered by Novi, the digital meta Wallet that was launched six months ago on a trial basis and operates with payments made with Pax Dollars (USDP), a stablecoin pegged to the US dollar issued by Paxos.
WhatsApp to trial cryptocurrency payments using Meta’s Novi wallet
According to Novi’s official site, sending a payment works like sending any other attachment on WhatsApp . The feature must be accessed via the clip icon on android or the + icon on iOS and then select “Payment” from the menu that appears.
Novi’s site notes that there are no fees to send or receive money , limits on how often you can make fee- free transfers to maintain balance in Novi’s account or withdraw funds to the bank account. Payments are transferred instantly.
Novi’s trial was originally available in the United States and Guatemala , but users in Guatemala will not be able to access WhatsApp’s new payments functionality.
Instead, they should continue to use the standalone app. I did not see it. Payments do not affect WhatsApp’s end-to-end encryption , which works by default for all personal conversations. In addition, the interface is available in English . WhatsApp payments seem closer and closer
What does Meta have to do with it?
The new pilot has its roots in Facebook’s highly publicized (now Meta) Cryptocurrency Plans , which were announced in 2019 and are beginning to materialize now.
At the time, Facebook (as part of the Libra Association) planned to develop and launch a cryptocurrency called Libra , which would be tied to a low-volatility basket of assets rather than a specific currency.
This would be integrated with a digital wallet developed by Facebook called Calibra and now called Novi. The entire system was designed to provide a way to send money around the world at lower rates than traditional methods.
However, these plans have changed considerably since then: the Libra project was losing its partners (Visa, Mastercard, Mercado Pago, among others) under pressure from the White House and became the Diem Association. Most notably, I didn’t see it end up being launched without the Diem cryptocurrency .
Instead of, Pax Dollars is a stablecoin offered by the crypto company Paxos, while the cryptocurrency exchange will be delivered through Coinbase, one of the most important exchanges in the world and listed on Wall Street since this year.
Then-Novi Meta boss David Marcus said the company is still committed to Diem when it announced the launch of the Novi pilot . “We intend to launch Novi with Diem once it receives regulatory approval ,” he said on Twitter.
While WhatsApp payment plans in the United States revolve around I did not see it and cryptocurrency in other parts of the world is already offering Payments using fiat currencies .