U.S. Senators Oppose Facebook Crypto Wallet Project

• Five senators from the Senate Banking Committee have voiced complaints regarding Facebook’s new cryptocurrency “Diem” and crypto wallet “Novi,” urging the company to halt advances in the projects.

• Senator Elizabeth Warren was one of the senators calling for the project’s termination, stating “given the scope of the scandals surrounding your company, we write to voice our strongest opposition to Facebook’s revived effort to launch cryptocurrency and digital wallet, now branded ‘Diem’ and ‘Novi.’”

• Other members of the committee expressed that Facebook has repeated made business decisions that “have harmed its users and broader society,” and that “Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient.”

• This news comes after Facebook announced a partnership with Coinbase on Tuesday, where the crypto exchange will provide custody services for a Novi pilot project in the U.S. and Guatemala. Users will be able to send and receive Pax Dollars (USDP) through a Novi account.

• Coinbase CEO Brian Armstrong congratulated co-creator of “Diem” David Marcus, saying “it takes a lot of perseverance to ignore the haters and ship.”