Facebook phasing out Novi cryptocurrency system by summer's end

Facebook’s short-lived cryptocurrency system, Novi, will be phased out by the end of the summer, Meta reported this week.

“Novi will no longer be available for use after September 1,”  Novi reported on its corporate website  this week, advising visitors to “withdraw any remaining balance in your Novi account before that date.”

The cryptocurrency system was originally, partially launched by Facebook to support its abandoned stablecoin project, Diem, that the company determined was not workable earlier this year.

The phasing out of Novi comes at a time when there are growing problems in the cryptocurrency market.

 More well established cryptocurrencies such as bitcoin have also experienced downturns in value and unpredictable fluctuations.

“The May collapse of UST, which lost its peg to the dollar, concerned investors and regulators that certain types of stablecoins might not have the backing necessary to redeem them in the case of a run. Meta shares were flat in after-hours trading at $160.00,” CNBC reported.

The company promised its customers the withdrawal process would be efficient and simple. Users can either transfer their remaining balance to their bank account or withdraw the digital funds as cash, the Novi website reports. 

“Before Novi goes away, we’ve made it easy for you to get your remaining balance and download your information,” a message on the website’s homepage reads.