Technology often advances at an exponential rate. The last few decades of innovations are proof enough of that. Several groundbreaking technologies have transformed the way we live and work. And they are determined to keep doing so for the foreseeable future. In fact, we are in the midst of another breakthrough, and this one could be as big as the internet. If you’ve heard about Novi digital wallet, you’ll know what this is about.
In recent years, a new form of money called “cryptocurrency” is on the rise. You might have heard about Bitcoin, Ethereum, Libra, and other cryptocurrencies. Basically these are not issued by the governments but exist on blockchains. They are created by private individuals or teams of developers throughout the globe for different reasons. As they are not issued by governments, they get their value from the market dynamics of demand and supply.
Facebook, one of the most influential tech companies in the world, believes that cryptocurrencies have a bright future. To leverage this innovation, they created the Libra project last year. It is a global, borderless, digital currency and could change money as we know it. You will be able to store digital currency and transact in Libra with just simply using your mobile phones. There will be no central authority (like banks) involved. To help achieve this dream, Facebook has an official wallet called the Novi digital wallet.
Novi Digital Wallet
Cryptocurrencies work differently to the fiat system. In case you didn’t know, fiat is the money that we use today (like dollars). Central banks and commercial banks of different countries help manage this fiat system. The digital currency world is really different. There are no central authorities or intermediaries that manage the transactions. This is the core principle on which cryptos are built.
So, to store, send, and receive cryptocurrencies, you need a digital wallet that is basically an app that you download on your phone. In Libra’s case, the official wallet app is called Novi, for more information you can visit the Novi Website. It comes from the Latin words “Novus” and “via” which means “New” and “way” respectively. This digital wallet will be launched along with the launch of Libra in the coming years.
When Facebook revealed the Libra project last year, this official wallet was called Calibra but few months later, it was rebranded or renamed to Novi. The reason for this was the similarity in the names of Libra and Calibra which was causing too much confusion for regulators and the public in general. So, the rebranding was done to make things more clear and more distinct “Calibra is now Novi”.
How Will Novi Be Used
Facebook literally owns the most popular social media platforms in the world like WhatsApp, Instagram, and Messenger. They help hundreds of millions of people in the world to send and receive billions of chat messages across the globe. Now, the company wants to make sending and receiving money as easy as sending and receiving a text. And they want to do it natively on WhatApp and Messenger.
The Novi wallet will be integrated within these massive platforms that have hundreds of millions of active users. This will give the end users the ability to simply send someone Libra while they are chatting. They will also be able to request money from other people within the chat window itself. What’s more, the transactions will take place immediately and the fees will be almost negligible. It is this ease of doing transactions that Facebook wants to achieve.
The Novi wallet will also be available as a stand-alone app for those who don’t want to use WhatsApp and Messenger. That way, even more people can have access to it worldwide. This will help Facebook to achieve another goal of theirs with Libra which is to make money as accessible as possible. Today, financial inclusion is a huge topic of discussion as billions of people still don’t have a bank account.
These unbanked people do have smartphones and access to the internet. So, Novi could immediately onboard them to the digital currency world and help them transact freely. All user’s need to do is to provide government ID and they would be good to go. This has the potential to provide immense opportunities to billions that could ultimately contribute positively to the global economy. In fact, it can rekindle growth that has been lagging across countries in recent times.
Into The Future
The Libra project, with help from the Novi wallet, will help create a new future. A future where money won’t be restricted due to national boundaries or technological limitations. The current period will look very outdated in the future as the world transitions to cryptocurrencies like Libra. It will be same example on how we view the 20th century which had no internet or smartphones.
Facebook might have to work extra hard to make this a reality though. The initial response from global regulators and lawmakers was quite hostile. Even Mark Zuckerberg had to appear for several hearings to explain how Libra would work and how they would address some critical problems. Based on the immense feedback they received, they are making quite a few changes in the way the cryptocurrency is structured.
The rebranding of Calibra to Novi might be just one of these changes. If Facebook is really able to pull this off, it could end up becoming one of the largest things to happen in the technology space since the inception of the internet. Recreating the global financial system is certainly not an easy task. That too, a system where there is no need for banks and other financial institutions.
If history is any indication, Facebook might receive a lot of resistance from the guardians of the legacy financial system. However, as the wise saying goes, “You cannot stop an idea whose time has come.” The time for changing the concept of money has come and Libra, along with Novi, is poised to make that happen.