Facebook Novi replaces ‘Calibra’ as controversial digital wallet for Zuckerberg’s Bitcoin rival Revealed Sean Keach , Digital Technology and Science Editor 26 May 2020, 15:11 Updated : 26 May 2020, 15:52 Sean Keach , Digital Technology and Science Editor Invalid Date, FACEBOOK has rebranded the ‘digital wallet’ app that will soon store the firm’s controversial Bitcoin rival.
The new Novi app replaces Calibra – a virtual ‘bank’ proposed by Mark Zuckerberg that was slammed by governments and watchdogs around the world.4 The Novi logo for Facebook’s new digital wallet Credit: Facebook What is Novi and does it replace Calibra?
The new Novi app will act as a digital wallet for the Libra cryptocurrency.
This app was previously planned to be called Calibra, but the branding was largely tainted by a row over whether Facebook should be allowed to create a cryptocurrency.
Facebook plans to press ahead with the move, and says the Novi app will make transferring cash fast and highly private.
“With Novi, sending money will be as easy as sending a message,” said David Marcus, Facebook’s new Novi chief.4 The app will be used to transfer money privately, securely and quickly Credit: Facebook
“The Novi wallet will make money work better for everyone.”
According to Facebook, you’ll be able to use Novi as a standalone app.
However, the Novi system will also work inside Facebook’s Messenger and WhatsApp apps.
There won’t be any hidden charges for adding, sending, receiving or withdrawing money.
And Facebook says that money transfers will arrive instantly.
All Novi customers will be verified using government-issued ID, Facebook says.
And it claims that fraud protections will be built in throughout the app.
There’s also a 24/7 chat-based support and customer care team to help users if they get stuck.4 Regulators will be keen to clamp down on Novi, to ensure it’s not being misused by crooks – or by Facebook itself Credit: Facebook Libra/Calibra controversy – with fears of ‘financing terrorism’
It’s no surprise that Facebook has abandoned the Calibra brand.
The app was heavily scrutinised, with many fearing that Facebook was making a bid to dominate yet another part of life: our finances.
It faced heavy criticism from central banks, governments and financial watchdogs.
Many of the concerns lay in the fact that Libra/Calibra was a cryptocurrency, and would be difficult or impossible to regulate.
In July last year, US President Donald Trump tweeted: “If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations.”
The then Bank of England governor Mark Carney warned: “Anything that works in this world will become instantly systemic.
“And will have to be subject to the highest standards of regulation.”
German MEP Markus Ferber warned that Facebook could become a “shadow bank” with its new system.
And French finance minister Bruno Le Maire told French Parliament that a system like Libra could be used for money laundering and terrorism finance.What is Libra? Facebook’s Bitcoin rival explained Here’s what you need to know…Libra is a blockchain digital currency, or cryptocurrency Facebook created the system in 2017, and officially turned it into a division internally in May 2018 The Libra “coin” was first announced on June 18, 2019, with a view to launch in 2020 But the announcement was met with heavy criticism from governments, watchdogs and banks Due to its Bitcoin-like nature, the Libra system would be difficult for governments to regulate – unlike traditional banked money In July 2019, Facebook said it wouldn’t launch the cryptocurrency until regulatory concerns have been met And Facebook confirmed that the app wouldn’t launch anywhere in the world without US regulatory approval In May 2020, Facebook confirmed that users would transfer cash using an app called Novi Facebook says its Libra token will be backed by real financial assets – including US Treasury securities – to avoid volatility And each Libra partner will inject $10million on day one, so it has immediate asset backing Facebook’s Novi app is expected to launch with Libra later in 2020, and the technology will also be in Messenger and WhatsApp 4 This page on the official Libra website shows current ‘members’ helping to build Facebook’s new payment network Credit: Facebook Facebook Novi – Calibra release date, rebrand and launch countries
Facebook says Novi’s name is inspired by the Latin words ‘nous’ for ‘new’ and ‘via’ for ‘way.
“It’s a new way to send money, and Novi’s new visual identity and design represent the fluid movement of digital currencies,” said Facebook’s David Marcus.
“We’ve also included a nod to the Libra icon in the brand logo to underscore our commitment to the Libra network.”
According to Facebook, an early version of Novi will be available as soon as the main Libra network goes live.
That’s expected to be later this year, though no firm date has been set publicly.
The app will roll out to an unnamed “initial set of countries”, and will include features for “instant, secure” cross-border money transfers.
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