Cooperation with and Paxos, Facebook is launching a digital wallet test Novice in the United States and Guatemala.

Starting Tuesday, a small group of users in both countries will be able to download the digital wallet app on their iPhone or Android device and fund their account with a debit card. From there, they will be able to send and receive money in Pax Dollar (), a kind pegged to USD issued by trust company Paxos.

Novi Wallet tested by Facebook
on an iPhone or Android device

Facebook has chosen in its testing program because of its proven track record and “important regulatory and consumer protection attributes.” Because reserve Fully cash-backed, Novi users will have the ability to withdraw funds in their local currency.

Client funds will be deposited with , which manages $180 billion in assets.

A Facebook spokesperson said that the testing phase will allow Facebook to evaluate the wallet's core functions and showcase operational capabilities, particularly those around customer service and compliance. Novi is also designed to be interoperable with other digital wallets.

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Facebook plans to launch Novi along with Diem network if allowed

The spokesperson stated that the company is not giving up support for the network Diem, a permissionless payment system is still waiting for the green light from Washington.

Facebook has faced some criticism following the initial announcements of Diem, particularly from central banks, lawmakers and regulators. It remains to be seen whether they can combine the applications of into creating a successful Diem system.

“We plan to launch Novi with Diem when the regulator 'nods' and goes live.”

Despite significant lobbying powers in Washington, Facebook has struggled to convince senior policymakers to approve Diem. The proposed payment network has undergone several design iterations since 2019, but concerns about money laundering and has slowed down the approval process.

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