Libra: Novi’s letter to the American regulator OCC
Libra: Novi’s letter to the American regulator OCC
Regulation

Libra: Novi’s letter to the American regulator OCC

By Alfredo de Candia - 11 Aug 2020

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Last week Libra sent a letter to the office of the Comptroller of the Currency (OCC) concerning NOVI, the wallet for using the Facebook digital payment system.

In the letter, Libra writes that they want to cooperate with the authorities and that, starting from the fact that America is considered an innovative country, it is necessary to keep up to date with technology and respect other countries that are progressing at a faster pace.

For this purpose, Novi Financial was founded with the mission of making payments fast and easy for everyone. The letter also recalls that banks should supplement this technological progress and manage both traditional funds and crypto.

In fact, Libra explains that banks in particular could use a model based on DLT (Distributed Ledger Technology) to lower management costs while continuing to offer the same services such as custody, identity verification, management of transactions and financial products, and so on.

Overall, this letter represents Libra’s commitment to communicate with the competent authorities to make the legislation more in line with new technologies:

“We look forward to continued, meaningful engagement with the OCC and the other policy stakeholders through a robust and iterative conversation and consultation period for any applicable rules and regulations.”

Facebook has therefore not stopped working on the project aimed at integrating a digital payment system within its platforms, trying to create a model similar to what has already been established for several years in China and Asia, where WeChat and AliPay are already at advanced levels.

In this case, what Facebook wants to achieve is a payment system that integrates a DLT, which would be private with only a hundred validators, and would control internally all the information related to transactions.

However, Facebook has suffered several scandals related to the management of user data and this certainly did not play to its advantage, so it is feared that a similar situation could be repeated with the financial data it would manage, which is delaying the launch of the project.

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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