Five senators have called for immediate termination of Facebook’s new crypto wallet pilot program, just hours after it was launched with Coinbase.
Senator Elizabeth Warren was one of five urging Facebook CEO Mark Zuckerberg to “end the project immediately” inletter atAddressed to Zuckerberg on Oct. 19, the five Democratic senators wrote:
“With the extent of the scandal surrounding your company We express strong objection to Facebook’s revitalization efforts to launch a cryptocurrency and digital wallet. which are now named ‘Diem’ and ‘Novi’ respectively.”
Diem is Facebook’s stablecoin project, formerly known as Libra, which has been heavily scrutinized and facing regulatory hurdles for years. As a result, a number of key partners withdrew from their investments, while Novi is the company’s crypto wallet. designed to store Diem tokens and other stablecoin coins.
Novi just announced the launch of a pilot program in the United States and Guatemala on Oct. 19.cooperatewith Coinbase, which will provide crypto custody services The pilot program will allow users to send, receive and receive Paxos Dollars (USDP) through their Novi accounts.
“Facebook cannot be trusted to manage payment systems or cryptocurrencies. And the existing ability to manage risk and secure consumer protection has proven inadequate,” Senator Brian Schatz said.
On Oct. 20, Coinbase CEO Brian ArmstrongCongratulations toCo-Founder and Board Member of Diem David Marcus
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