WhatsApp has partnered with Novi to support cryptocurrency-based money transfers in the US.
Novi says its service relies on a stablecoin called the Pax Dollar (USDP) issued by Paxos. Unlike cryptocurrencies that constantly fluctuate in value, such as Bitcoin and Ethereum, each USDP is equivalent to one US dollar. That makes it easier to use the stablecoin for money transfers.
Novi says WhatsApp users will have to create accounts with its service to use this feature, which makes sense, and that it’s looking to “bring Novi to as many places as possible.” Neither company offers any indication of when the integration might expand to other countries, though.
If this is the first you’re hearing of Novi, well, it’s probably because it was originally created to serve as the digital wallet for the Libra cryptocurrency Facebook was developing. (Which has since been renamed Diem but still hasn’t debuted 2.5 years after it was announced.)
Now the wallet is being tested with USDP in the US and Guatemala. This integration with WhatsApp is Novi’s breakthrough moment—and yet another example of how Meta, the company formerly known as Facebook, can use its popular services to boost its newer initiatives.
It’s worth noting that Novi is careful to say on its website that it offers no-fee money transfers via USDP “today.” Presumably the company will have to make (actual) money at some point; whether or not that means fees will be introduced after the service is established is unknown.
Meta didn’t immediately respond to a request for comment.
More information about sending money with Novi through WhatsApp is available via the digital wallet’s website. It will be available to “a limited number of people in the US” to start, per the announcement, and WABetaInfo reports that it can be used on both iOS and Android.
