The goal of the Novi project is to offer a digital wallet to 1.7 billion people around the world who don’t have access to a bank account. Being shut out of the global financial system has real consequences for people. Underserved populations suffer the most, and the cost of sending money abroad can be prohibitively high. Fortunately, companies such as Meta have been working on ways to integrate cryptocurrency into their messaging apps.
Stablecoins are pegged to the U.S. dollar
There are numerous reasons for investing in a stablecoin pegged to the U.S. dollar, including regulatory concerns. The Fed is likely to raise interest rates several times this year, potentially stimulating demand for the U.S. dollar. The price of stablecoins pegged to the dollar can take advantage of this potential increase. Additionally, the Fed’s actions could affect regulating stablecoins.
One of the primary reasons why stablecoins are becoming so popular is because they combine the benefits of traditional assets with the flexibility of a digital asset. Stablecoins like USD Coin have a growing market cap and are an easy way to store value in the crypto ecosystem. Dollar-denominated assets are stored in segregated accounts at US-based financial institutions. An independent accounting firm verifies that these accounts are legitimate.
Payments are instant
If you’ve ever wondered how to transfer money from one account to another without any fees, you’ve come to the right place. Novi is an instant transfer app that is safe and secure. It uses Pax Dollars, a stablecoin that has a fixed value of one US dollar. This stablecoin is backed by cash reserves. Novi is currently undergoing development, and launched in October in Guatemala and parts of the US. The company hopes to reach the nearly 1.7 billion adults without a bank account. Novi has partnered with Coinbase to ensure that customers’ funds are safe and secure.
The Novi wallet has an option to send and receive cryptocurrencies. It can accept a wide variety of cryptocurrencies, but it currently doesn’t support Bitcoin and other crypto coins. To make the most secure payments, the wallet relies on Paxos, a stablecoin tied to the U.S. dollar. Its lack of support for other cryptocurrencies won’t affect the end-to-end encryption.
There are no fees
Facebook is gearing up to launch a digital wallet called Novi, which will allow users to send and receive money instantly, and which is free from fees. To help with the logistics, Facebook has partnered with cryptocurrency exchange Coinbase to store Novi users’ cryptocurrencies. Coinbase stock rose 2% Tuesday after the news broke. Novi will also allow people to send and receive money worldwide with no fees. And because it uses blockchain technology, the service is extremely secure. It also uses Coinbase’s proprietary cold storage capability to protect user funds.
The name Novi is derived from Latin words “novus,” meaning “new,” and “via,” meaning “way.” As an added bonus, Novi allows unbanked users to use it without worrying about fees. The wallet supports cryptocurrencies like Bitcoin, Ethereum, and Litecoin, which are increasingly becoming popular among the unbanked. The user interface is intuitive and has no hidden fees.