WhatsApp Is Piloting A Crypto-Based Feature For Sending Money

Meta (ex-Facebook) seems to be working on expanding its presence in the crypto realm, as Meta’s subsidiary – WhatsApp, would test a pilot program of its new feature – sending and receiving money without paying fees, using cryptocurrency.

The feature pilot is a perfect use case for using digital currencies and adopting them in mainstream finance.

The interesting thing is the implementation of the Novi crypto wallet, which was first designed to be a native wallet to Facebook’s Diem cryptocurrency. Six weeks ago, Novi started testing its wallet in Guatemala and the United States, while WhatsApp CEO Will Cathcart and Novi CEO Stephane Kasriel announced the Novi integration to select WhatsApp users on Twitter.

"People use WhatsApp to coordinate sending money to loved ones and now Novi will help them do that securely, instantly and with no fees," Cathcart tweeted.

However, Novi’s team did a rather controversial approach, announcing that for now, Novi would allow sending money via U.S. Pax Dollar (USDP), a regulated cryptocurrency issued by blockchain company Paxos Trust of New York, instead of its Diem stablecoin. 

A further announcement by Novi’s team made it clear that sending, receiving, and converting fiat-to-crypto would be free of taxes or limits on how many payments can be made.

“The pilot test of Novi has allowed the company to learn which features and functionality are most important to people, and focus our efforts on making those even better." Novi’s CEO noted. However, there is still no strict timeline for releasing Novi to the broad public.

Meanwhile, Novi is still way behind other payment services and money-transfer apps like Cash App, Venmo, and Zelle. 

The reason for choosing USDP over the Diem (ex-Libra) stablecoin is the ongoing regulatory scrutiny from the federal government, which still hinders Diem’s public release. Libra was intended to be backed by a basket of fiat currencies, but regulators forced Facebook to scale down its efforts and offer a U.S. dollar-backed version of Libra – Diem. However, with no clear regulatory approval, Facebook switched to Paxos and its USDP stablecoin.

Nevertheless, Meta’s crypto wallet comes just at the right time, as digital currencies are starting to win over more U.S. investors and gain worldwide recognition. Crypto leaders like Bitcoin, for example, showcased how adoption by U.S. companies and institutional investor interest could skyrocket its price above $50,000, despite the volatility issues.

The trend Bitcoin has set quickly transferred down the stream, pushing projects like Ethereum to never seen before heights. Furthermore, projects like Dogecoin proved how community-based tokens can make a whopping price increase, as the meme coin and other cryptos of its kind spiked after celebrities including Snoop Dogg, Paris Hilton, Kanye West, and others have thrown their names behind digital currencies.