Facebook is partnering with Coinbase in an effort to create a new digital wallet that will allow users to send money internationally without any retention.
Facebook's Novi service, which has been in development for several years, will be piloted in the US and Guatemala, according to Facebook . Novi is available to anyone in the US except those living in Alaska, Nevada, New York and the US Virgin Islands.
The tool allows users to send USDP - a fixed Bitcoin linked to the value of the US dollar - which can then be redeemed in local currency. The USDP is one of the many cryptocurrencies associated with the US dollar.
In a post, Coinbase explains that it provides the Novi service with its proprietary, fully segregated cold storage capability for managing private keys called Coinbase Custody.
"Coinbase Custody is a leading cryptocurrency platform and custodian that securely manages $ 180 billion on its platform. For the past nine years, Coinbase has developed in-depth know-how into secure and scalable cryptographic infrastructures, which we originally created to power our own applications.
David Marcus, head of Novi's division, said the digital wallet was intended to help 1,7 billion people worldwide who do not have bank accounts but have access to a smartphone.
"We chose the USDP so that we could test a stable Bitcoin that has been running successfully for over three years and has significant consumer protection features," says Marcus.
The application is already available in the app stores of Google and Apple. Users can sign up for the Novi service using their ID.
George is still wondering what he is doing here….
