WhatsApp launches cryptocurrency payments pilot in the US
WhatsApp has introduced a new trial program that allows a “limited number” of individuals in the United States to send and receive money using cryptocurrencies from within a chat.
Payments are done using Pax Dollars (USDP), a stablecoin tied to the US dollar produced by Paxos, which is enabled by Novi, Meta’s digital wallet that started as a prototype six weeks ago. Novi’s new CEO Stephane Kasriel and WhatsApp’s Will Cathcart both publicized the announcement.
According to Novi’s website, sending a payment on WhatsApp works similarly to sending any other file. On Android, tap the paper clip icon, and on iOS, tap the Plus icon, then pick “Payment” from the menu that displays.
There are no costs for sending or receiving money, no restrictions on how often payments may be transferred, and no fees for keeping a balance in your Novi account or withdrawing it to your bank account, according to Novi’s website. Payments are made in real time.
The Novi test was initially accessible in the United States and Guatemala, but according to WABetaInfo, users in Guatemala will not be able to utilize the new WhatsApp payment feature.
They’ll have to stick with the standalone Novi app instead. End-to-end encryption, which is enabled by default for all personal chats on WhatsApp, is unaffected by payments.
Both English and Spanish versions of the WhatsApp Novi pilot are accessible.
Meta’s much-hyped cryptocurrency intentions, which were officially unveiled in 2019, are at the heart of the new pilot.
Facebook (as part of the Libra Association) planned to create and launch a cryptocurrency named Libra at the time, which would be tied to a basket of low-volatility assets rather than a single currency. Calibra, a Facebook-developed digital wallet, would be integrated with this.
WhatsApp launches cryptocurrency payments
The entire system was created to provide a more cost-effective way to transmit money throughout the world than previous ways.
Since then, these intentions have changed significantly.
Calibra has become Novi, the Libra Association has lost some of its most prominent members, and the Libra Association has become the Diem Association.
Novi was the first cryptocurrency to emerge without the Diem cryptocurrency. Pax Dollars, on the other hand, are the creation of a different firm called Paxos, with Meta depending on cryptocurrency exchange Coinbase as its backend.