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Meta Reveals It Will Be Pulling the Plug on Its Crypto Projects in September

Cryptocurrency has been one of the hottest topics online for the past decade, and many brands ventured into the crypto space hoping to emulate the success seen in established brands, including Facebook (later rebranded as Meta).

Meta first made its way into the crypto space in 2019, introducing crypto enthusiasts with the Libra project. While it was still a hot prospect then, the recent crypto market crashes have contributed to its downfall.

Read also: KPMG USA and Canada Will Be Dedicating 2022 to Developing and Utilizing the Metaverse

Last Friday, Meta CEO announced that the digital wallet payments pilot Novi (which was introduced last year) would end on September 1, ending the Libra stablecoin experiment.

The announcement was posted on its website, attaching links that urged users to withdraw the money they deposited earlier “as soon as possible.”

Starting July 21, users will lose the feature to add money to their accounts. They will also be unable to access their transaction history and other data. Additionally, the Novi app and the Novi WhatsApp account will become void.

The Libra coin was later renamed Diem and placed in the Novi Wallet (originally called Calibra) in June . Novi’s role was shifted when regulatory pressure prompted the project to change its course.

In 2020, Novi became a money-transfer pilot for crypto based remittances, but the popularity was limited to the United States and Guatemala.

While the Novi pilot is meeting its end, Meta revealed plans of repurposing the technology for future products like the metaverse initiative.

“We are already leveraging the years spent on building capabilities for Meta overall on blockchain and introducing new products, such as digital collectibles,” said Meta in its email. 

“You can expect to see more from us in the Web3 space because we are very optimistic about the value these technologies can bring to people and businesses in the metaverse.”

Meta has also expanded its reach, exploring and branching out into other sectors to support NFTs on its site.

Despite Meta’ stablecoin-oriented plans for Novi, the company had little to no choice but to scrap those plans after they faced regulatory pushback regarding Meta’s ability to combat the prevalent money laundering, protect consumers, and monitor other security and financial risks, rebranding while it scaled back.

Earlier in January, Meta sold the successor Diem’s projects to Silvergate, a crypto-oriented bank, for $200 million.

The company’s decision to close the Libra chapter follows a downturn in crypto markets as the industry contends with layoffs, including businesses like Celsius and Voyager, both of which are facing solvency issues.

Read also: Meta Develops a New AI Platform to Generate True-to-Life Avatars

Opinions expressed by Coin Week contributors are their own.