WhatsApp is launching a pilot program in the United States that will allow users to send and receive money via chat using cryptocurrencies.
This money transfer feature relies on Novi, a digital wallet that Meta launched a few months ago, and payments using Pax Dollars (USDP), a stablecoin whose value is pegged to US dollars and issued by Paxos, as quoted from The Verge, Friday (10/12/2021). ).
This trial was announced directly by Head of Novi Stephane Kasriel and Head of WhatsApp Will Cathcart. In his tweet, Kasriel said sending money via WhatsApp was as easy as sending a regular message.
There's a new way to try the @Novi digital wallet. Starting today, a limited number of people in the US will be able to send and receive money using Novi on @WhatsApp, making sending money to family and friends as easy as sending a message. pic.twitter.com/dGz3lejri7
— Stephane Kasriel (@skasriel) December 8, 2021
Users can access this feature by clicking on the paperclip icon in the WhatsApp application for Android, or the plus icon on iOS. After that select 'Payment' from the menu that appears.
On Novi's official website, it is explained that users will not be charged when sending and receiving money, the amount of money transferred will not be limited, and no fees will be required to deposit a balance in Novi or when withdrawing money to a bank account. The money transfer process is also completed instantly.
Novi has previously been tested in the US and Guatemala. But according to WABetaInfo information, users in Guatemala can only access payments through the Novi application, not directly from WhatsApp.
In a subsequent tweet, Kasriel said the Novi payment feature would not affect the privacy of conversations on WhatsApp which are protected by end-to-end encryption.
This project has its roots in Meta's (formerly Facebook) ambition to dive into the crypto world. In 2019, Facebook plans to launch a cryptocurrency called Libra which is integrated with a digital wallet called Calibra.
A year later, these plans began to shift. Libra has now changed its name to Diem, and Calibra to Novi. Interestingly, Novi was launched without using Diem as its currency.
Former Head of Novi David Marcus said Meta is still focused on Diem and will launch the currency with Novi after receiving approval from regulators.
WhatsApp itself has previously introduced payment features in two other countries, namely India and Brazil. The difference is, in both countries, payments are made using fiat currency, not crypto.