Should we trust Facebook on Novi – a Libra-based wallet?

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Libra could finally see the light of day as soon as January 2021

The long-awaited digital currency Libra could finally see the light of day as soon as January 2021. Libra will launch in the form of a U.S. dollar-backed digital currency.

Expected in January, the exact launch date is still not known and would depend on when the Libra Association receives regulatory approval by the Swiss Financial Market Supervisory Authority, or FINMA, to operate as a payments service.

Initiated in June 2019, the Libra Association faced major regulatory scrutiny causing some member companies like PayPal and MasterCard to subsequently leave the project. The basket of currencies backing Libra was originally to include several fiat currencies including the U.S. dollar, euro, the Japanese yen, the British pound, and the Singapore dollar.

Should we trust Novi –  a Facebook Libra-based cryptocurrency wallet?

Facebook announced that Calibra a Libra-based wallet with integrations in WhatsApp and Messenger has a new name, Novi. The Libra blockchain is supposed to operate independently from Facebook. Novi’s first product will be a cryptocurrency wallet.

In the past, Facebook was accused of using facial-recognition technology to illegally harvest the biometric data of its more than 100 million Instagram users. Even though Facebook denied the claim, there will be doubt when it comes to a Facebook new product – Novi wallet. Would it be safe and secured for Novi users?

No doubt that Libra will become one of the most-common used cryptocurrencies in the world, making international payments via blockchain much more convenient. ezDeFi wallet will soon integrate Libra on our non-custodial payment ecosystem as soon as it is officially launched.

 

What are the differences between Novi wallet and other cryptocurrencies wallet?

As a new form of digital payment, Libra requires a platform through which users can access and transfer the stablecoins. In the future, this Novi wallet could allow brands to push into Facebook, selling products directly to users of the social network, and collecting payment in Libra cryptocurrency. Proponents are touting this breaking down of barriers as a boon for international markets, particularly in developing areas with unstable currencies, but critics cite data mining as a serious privacy concern.

Facebook has stated it won’t use personal information from Libra transactions without consent and doesn’t plan to make user data a factor in improving targeted advertising but hasn’t provided details on how the information will be secured once the Libra blockchain makes the switch from permission to permissionless five years after its launch.

Compared to Facebook’s policy on protecting user’s identities, other cryptocurrencies wallets allow users to save their mnemonic keys pieces on their high-secured clouds. Users can control their information or how this data will be secured, preventing today’s uncertainties from becoming tomorrow’s identity theft crisis.

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