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Novi is a mobile wallet currently in development by Facebook, which will be free to download once it is released. Although not much is known about the wallet, the social media giant has provided some useful information. As more details are released, this Cryptimi review will be updated.
The Novi wallet was Facebook’s attempt to distinguish between Project Libra, of which it is only part of, and what was originally the Calibra wallet, which it owns outright. Due to the similarities in name between Libra cryptocurrency and Calibra, public perception was that the two were one and the same, and this caused confusion, not least by some regulators.
In fact, regulators have been scrutinising the entire project from its onset and their attention has not faded since. Concerns over the affect of a single currency that is accessible by billions of social media users worldwide have kept central bank governors and regulators with many sleepless nights.
Whilst Project Libra has been carefully swept under the carpet, it has been partially replaced by the Diem Association.
How does Novi currently compare to other top rated crypto wallets?
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Even though Project Libra has attracted its fair share of criticism and speculation, leading to several founding members abandoning it, things appear to be improving for one of the world’s most talked-about cryptocurrency. According to Facebook, the name Novi was chosen as it is a combination of the Latin words Novus, which means new, and Via, which means way.
Novi was will only be designed to support what was once known as Libra. Today, this cryptocurrency has also changed its name to the Diem Payment System. The stablecoin was originally going to be pegged to a bundle of assets, including traditional currencies. This original intention has since morphed, and it looks like there will be different versions of Libra pegged to separate fiat currencies.
The Diem’s concept has remained relatively similar. The payment system will be built upon a secure and scalable Blockchain and be backed by cash and asset reserves. These will include government securities and other low-risk assets.
Diem will be governed by the Diem Association of which Novi Financial is a member. However, the payment system aims to act unilaterally and not be directly influenced by Novi or any other association member.
Diem (XDX) is a Blockchain-based payments system designed to provide accessible and instant money transfers. In addition, the entire solution is geared towards low-cost and security. It’s been designed as a modern solution to support the individual need for financial services and focuses especially on the millions on unbanked around the world.
With Diem, you will be able to send and receive funds, as well as buy and sell goods and services online and in person.
Unlike Bitcoin and most Altcoins, including Litecoin and Ethereum, Diem’s value was originally designed to come from the basket of assets it was pegged to. This relative price stability would help ensure user confidence and would also make it an attractive currency for merchants.
Since Novi is only one of the members of the Diem Association, is it will not have any powerful control over the currency. Novi will be the company’s way to link the cryptocurrency to Facebook’s messaging apps, but the wallet will not have any exclusivity over the coin.
Novi will be a mobile wallet, only available on portable digital devices which support either WhatsApp or Messenger. The wallet does not have any hardware components, nor does it look like it will pair or connect with other cryptocurrency wallets. Once you have set up your wallet you will be able to send and receive Diem directly with your contacts at the touch of a button. All you will need is an Internet connection.
Once Novi is available in your country, all you will need to do is download it onto your phone and start using it. The Novi app will be free to download, and available across most mobile brands. Precise details regarding set up and configuration are still unknown to the public, however, Facebook has released tidbits of information.
For starters, you should be able to link one or more traditional payment methods to your Novi wallet through the Diem payment system. Initially, you will be able to convert USD, EUR, and GBP into XDX.
To send funds to anyone in your contact list all you will need to do is find the person and click on the appropriate option. You will, of course, be asked to select the value of funds to transfer. Transfers will probably be instantaneous, unlike other cryptocurrency transfers which can take minutes or hours. Whilst Facebook has stated that Novi will not have any hidden fees it does not provide information about any potential transfer cost.
If you receive Diem through Novi you will have the option to either keep the currency stored in your wallet or withdraw it to traditional currency.
Novi is also being promoted for business use, making it likely that you will eventually be able to pay for goods and services using the wallet. Accepting cryptocurrency payments over traditional payments has several advantages, including lower fees and no risk of chargeback claims. In addition, Novi promises to reduce transaction time and cut other costs associated with e-commerce payments.
Speculation on Libra’s independence from Facebook has been rampant. Regulators, prominent community members, and tech experts have raised doubts on whether the cryptocurrency will really be free of the social media giant’s global influence. What’s certain is that Novi’s allegiances are not in question. The company which will operate the wallet is a subsidiary of Facebook.
Whilst this fact might keep questions on Libra’s decentralisation afloat, it also means that the tech giant’s security systems will be extended to Novi. Although details of security are not publically available, and most won’t ever be, users can be sure that their details and their funds will be protected using an array of top-tier firewalls, encryption, and safety audits.
In addition, before being able to use Novi, all users will be required to verify their account using government-issued photo ID. A dedicated team will have the responsibility to verify user accounts and ensure that transactions are genuine. To back up the effectiveness of this team, Novi is guaranteeing that any fraudulent transaction will be refunded.
According to the Novi website, the wallet is or will be a regulated financial company which will securely store your personal details. These details and sensitive information regarding your transactions will not be available to third parties, including Facebook itself. Further information regarding the wallet’s security and privacy can be found on Novi’s website.
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Accurate information regarding possible wallet recovery options is not currently available. However, since Novi will be, in most cases, integrated with WhatsApp or Messenger, users will likely use existing criteria to log in. Should you forget your username or password you will likely be able to recover your account using a Forgot Password option. In order to enhance security and protect funds in case a phone is stolen, users will probably be able to activate two-factor authentication (2FA).
As a result of these possible recovery options, should your phone be lost or stolen your Novi funds should be safe. By downloading your Novi wallet onto a new phone and verifying your identity you should be able to gain access to your funds once again.
Since Novi is a cryptocurrency wallet which is still in development, reviews and opinions about it are still not available. However, unlike most such wallets, Novi and its predecessor, Calibra, have spurred a significant online conversation.
Although there are strong arguments in favour and against Libra and its associated systems, the majority agree that should the cryptocurrency launch it could revolutionise the use of digital tokens overnight. Facebook counts over 2.5 billion users worldwide and all these individuals could, at some point, have easy and direct access to the cryptocurrency. Novi will facilitate the use and transfer of the coin, and this would make it likely that a substantial number would start to use it soon after it becomes available.
The majority of all controversy relating to Project Libra is focused on the Libra currency, now Diem. Novi’s features are not being questioned or disputed. It is likely that the wallet will build upon the success stories of other mobile wallets, whilst integrating advanced technology and additional useful options into the mix. Moreover, Facebook’s cryptocurrency wallet has the advantage of not having to build a community from scratch.
Basing ourselves solely on the information which is currently available as regards to the Novi wallet we can compare it to several established competitors.
Novi and eToro Wallet share the characteristic of being owned by global corporations. This gives them both credibility and a strong reputation. Whilst Novi will only support the Diem (XDX) cryptocurrency, eToro Wallets supports over 126 different coins and counting. Both wallets are hot wallets and this puts user funds at greater risks of a hack than cold wallets, however, Novi is guaranteeing to refund any funds stolen as a result of fraud. Other similarities between the two wallets is that they are both free to download and regulated. In fact, users need to verify their account before being able to use either wallet.
Both Novi and Trustology are user-friendly mobile wallets, but whilst Novi can only support XDX, Trustology can accept 11 different coins, including Bitcoin, Ethereum, and ZCash. Trustology is free to download, but there are also premium plans available. These plans include fund insurance, a feature which will be available to all Novi users, probably for free. The ultimate difference between these two mobile wallets is their purpose. Whilst Novi was developed as a payment facilitator for messaging apps, Trustology has been created for developers of decentralised applications.
Our Novi rating is based on information provided at the time of writing by the company.
5.0
3.5
1.0
Although information regarding fees is still not available, users will likely have to pay fee every time a currency conversion takes place.
To indirectly invest in Novi you need to either invest directly in Facebook or buy Diem cryptocurrency.
All Novi users will be required to provide government-issued photo ID before being able to use the cryptocurrency wallet. Furthermore, Novi's users will be able to flag suspicious activity directly with the customer care team.
Facebook has stated that Novi will be a completely separate entity from the social media giant. According to Facebook, the two entities will not share or have access to each other’s user information.
Novi is a subsidiary of the social media giant.
eToro Wallet is a relatively recent addition to the eToro suite of products and services. Allowing you to send, receive, and trade cryptocurrencies, the wallet is set to become a major player in the market. Highly volatile unregulated investment products. No EU investor protection.
The Trustology wallet is an innovative custodial service which combines the best features of hot and cold storage devices, offering you a secure solution to manage your cryptocurrencies.