The emergence of digital currencies opened new doors for customers and businesses. It showed that they could exchange goods and services through cryptocurrency. Despite only existing online and not regulated by the government, cryptocurrency is widely used today.

Several organizations already integrated it into their payment options. Some companies also created digital wallets for such tender, with Facebook as one of the examples.

Facebook already released a digital wallet called Calibra last year. It was part of the company’s plan to enter the digital currency market. However, this year, the social media giant renamed it into Novi, coming from the Latin words “novus” for “new” and “via” for “way.”

According to Facebook, Novi is a platform that allows people to send Libra to anywhere in the world easily. It also serves are Libra’s digital wallet. Libra is a digital tender run by a nonprofit association and backed up by a number of companies and organizations. As facebook houses the digital coin, it becomes accessible on mobile and worldwide.

The process is that users will first add money to their wallets, and Facebook will convert it into Libra digital coins before sending it to the respective recipients. On the receiving end, the recipient will get the digital currency instantly in their Novi wallet, removing the additional payments on instant money sending, and have the choice to leave it in their wallets or withdraw it in their local currency.

However, according to a report by CNBC, policymakers worry about the possible effects of the project, which are the risk of potential money laundering and a disruption in the current financial system. Another possible impact of Novi is it might compete with fiat currencies.

In answer to this, Facebook said that their digital wallet will ask users to present a government-issued ID for verification and that it will have “fraud protections,” in-app reporting, and customer care for security. Users will easily track the transfer with the use of the app. If ever someone is a victim of fraud, they automatically become eligible for a full refund. Also, Facebook promises sensitive is secure, and the transfer histories are only viewable by users.

The way how people are purchasing goods and services is continuously changing. Debit and credit card payment options made available for customers when buying products and services created a new convenience for them. It created new types of customers who would instead use plastic money than real money when out and about.

But convenience does not stop there. All thanks to blockchain, there is a more secure way of paying and sending money to people and businesses. It also removes hidden fees and costs of intermediaries since the participants involved are only the send and receiver. They will no longer need for middlemen as smart contracts will activate depending on the conditions set as well as the money is received securely and instantly.