Facebook Novi is here but where is Diem?

Karthik Subramanian

Facebook announced the launch of the Novi wallet yesterday on a pilot basis with Coinbase serving as the custodian for the same but instead of using its own Diem crypto, the company has chosen to use USDP for the pilot.


Users would be able to purchase USDP which would get deposited into their Novi wallets and then they would be able to send USDP to other users within or outside the country making the process faster and more reliable as well as cheaper. But this raises the question as to what has happened to the cryptocurrency project of Facebook called Diem. This project has suffered many ups and downs over the last couple of years since the announcement of its launch in 2019. At the time of its announcement, the crypto industry was not as big or as close to mainstream usage as it is now but even at that time, the regulators were shocked into action as they realized how big Facebook was in different countries and what kind of consequences would be there if the company was allowed to use its cryptocurrency.

The regulators in many countries felt that the company would run a parallel economy especially in smaller countries, purely using the strength of its userbase and this was not something that they were comfortable with. So, they forced Facebook to go slow on its crypto project, which by then had been renamed to Diem, and this project is yet to see the light of day.

“I do want to be clear that our support for Diem hasn’t changed and we intend to launch Novi with Diem once it receives regulatory approval and goes live. We care about interoperability and we want to do it right,” Novi project lead David Marcus said on Twitter.

This was a clear indication that Diem is still in the works but as Facebook is already deep in trouble with regulatory and privacy issues, it would not want to stir up the hornet’s nest at this time. There is also a thought that Facebook might build a separate platform for the metaverse, which is fast gaining traction around the world, and Diem may become the primary currency in the metaverse. This might help it to avoid regulatory checks with it launching its world and use the currency within its virtual world. That might be another thought that the company might be pushing for at the moment but for now, the Diem project seems to be in the backburner due to the regulatory issues and unless and until that is sorted out, it may not see the light of day.

Read this next


Top Crypto Millionaire Picks: ETH, SOL, BLP

The market is buzzing with the arrival of a new bull run, and savvy investors are closely watching certain cryptocurrencies that show promise for substantial returns.


Influencer Examines BlockDAG Advances as Presale Hits $27.7M Amid Updates on Solana Transaction Fees and Injective (INJ) Price

Discover what famous YouTube influencer CryptoDexWorld has to say about BlockDAG’s presale performance and mining capabilities. More on Solana Transaction Fees and Injective (INJ) Price Updates.


Discover the Best Altcoins to Buy: Exploring Near Protocol, Cardano, and BlockDAG’s 30,000x Potential

Explore top altcoins like Near Protocol, and Cardano, and discover BlockDAG’s massive potential. Join us!


Crypto Influencer Crypto Rick Endorses BlockDAG Amid $27.7M Presale Success; TRON Price & BCH See Surge

Crypto Rick endorses BlockDAG, boosting its $27.7M presale amid TRON and Bitcoin Cash surges. Explore why BlockDAG is a top crypto investment.


These Altcoins Have The Potential To Make You a Millionaire in 2024

The crypto market is witnessing a surge, and certain alternate coins are catching attention for their rapid growth.

Digital Assets

Point72 invests $77.5 million in Bitcoin, Morgan Stanley holds $269.9 million

Point72, the $34 billion hedge fund owned by billionaire and New York Mets owner Steven Cohen, held $77.5 million in the Fidelity Wise Origin Bitcoin Fund (FBTC) at the end of the first quarter, according to a recent filing.

Digital Assets

Binance claims Nigerian officials sought $150 million bribe

A Nigerian court has ruled that Tigran Gambaryan, a Binance executive detained on charges of tax evasion and money laundering, can stand trial on behalf of the world’s largest cryptocurrency exchange.

Digital Assets

Kraken reviews Tether listing in Europe ahead of MiCA adoption

Cryptocurrency exchange Kraken is “actively reviewing” whether to delist the stablecoin Tether (USDT) from its European platform, according to a report by Bloomberg.


Discover How MoonBag Coin Presale Stacks Up Against Dogecoin & Litecoin

Discover how the MoonBag Coin presale compares to Dogecoin and Litecoin, with unique features, a robust presale structure, and new opportunities in 2024.