Diem, the Facebook-backed cryptocurrency project, responds to attempts by the United States Senate to stop the launch of the Novi wallet. Diem, the Facebook-backed cryptocurrency project, has responded to attempts by the United States Senate to stop the launch of the Novi wallet.
Facebook cryptocurrency project has launched Novi wallet that will help people send and receive money abroad instantly, securely, and for free. However, US lawmakers took this situation harshly and sent an open letter to Mark Zuckerberg to stop the digital wallet project.
The letter, signed by the members of the US Senate Banking Committee, was as follows;
“Facebook, which took action to launch cryptocurrency and digital wallet, should immediately stop Novi wallet and not launch Diem.”
Despite backlash from the Senate, the Novi wallet launch continued to be listed for download on Apple and Google’s app stores.
In his response to the Senators’ letter, Diem stated that legislators may have misunderstood the “relationship between Diem and Facebook.” He also revealed that the social media presence and the cryptocurrency project are two completely different organizations.
Diem made the following statements in his press release;
“Diem is not Facebook. We are an independent organization and Facebook’s Novi is just one member of the Diem Association. Novi’s pilot in Paxos is unrelated to Diem. Diem’s blockchain -based payment system was purpose-built for payments, and that’s why we prioritize consumer safety, financial stability and the fight against financial crime. In addition, our independence is designed to promote competition and interoperability in payments.”
The Diem Stablecoin project is led by one of Facebook’s top executives, in person of David Marcus, head of Finance. Apart from that, the project was developed in 2018 and is an invention of Facebook. But since then the company has made several partnerships to keep the project alive.