Facebook today announced that it will change its digital wallet service, Calibra, to Novi.Calibra is part of Facebook's ambitious plans to enter the digital money market. Last June, Facebook released a digital cryptocurrency called Libra, which plans to offer digital trading and payment services to billions of potential users.
Calibra is a digital wallet for Libra. Users can use it through messenger and WhatsApp, and it will also be released in the form of an independent app. It is expected to be officially launched this year.
Libra will be run by the non-profit organization "Libra Association", which is supported by a series of companies and organizations. And Novi is a digital wallet for storing and exchanging Libra, owned by Facebook.
But Facebook's release of Libra has raised concerns among policymakers around the world that Libra could seriously disrupt the financial system, pose a potential money laundering risk and compete with legal currencies such as the US dollar.
Facebook said that Novi would require authentication using government issued IDS, and that the "fraud protection" feature would be built into the Novi wallet app.
Facebook said an early version of Novi would also be available in specific countries once Libra was officially launched. Novi will allow people to remit money to each other through a separate app, or through Facebook messenger and WhatsApp.
Facebook also revealed that the name "Novi" comes from the Latin "Novus" which stands for "new" and "via" which stands for "way".
In order to alleviate the industry's concerns, the Libra Association said in April this year that it would adjust the Libra project to support multiple versions of digital currencies, namely "stable currencies" supported by a single currency. Facebook's original plan, by contrast, was to give Libra a mix of currencies (US dollar, euro, yen, pound and Singapore dollar) and government debt.