The major social media and messaging platforms such as Facebook, Instagram and Signal are currently under discussion and plan to roll out new crypto-currencies in the coming years. The new project aims to allow users to send money to their contacts via applications with Venmo or PayPal. With both applications, it is possible to transfer money internationally. According to a New York Times report, Facebook is secretly working on a coin that WhatsApp users can instantly send to their contacts through the application.
The social media giant has held discussions with several foreign exchange transactions regarding the sale of the Facebook currency to consumers. WhatsApp is not the only messaging application that gets a currency encryption for its customers. Even other major communication platforms such as Telegram with an estimated 300 million users worldwide are working on a digital currency. For encrypted messaging, the signal also works on its own currency. If the idea is correct, Facebook and Telegram can make digital portfolios for file encryption available for millions of users.
Like Bitcoin, the new line of cryptocurrencies will make it easier to transfer money between the two. In the current designs that are discussed, they usually get rid of the energy-intensive mining process that Bitcoin usually relies on. However, on the downside, Facebook, Telegram and other companies are likely to face the same regulatory hurdles, if not technological obstacles that have made.
Facebook employs more than 50 engineers working on the project. The project is run by former PayPal president David Marcus, who started last year after Telegram raised $ 1.7 billion to fund its pilot project. Facebook has been clandestine about what was being built. So the secret staff receive separate key cards so that other employees can not have access to the facility.
Facebook has been looking at different ways to use the blockchain technology provided by Bitcoin and the way we can keep common records of multiple financial transactions on many computers rather than relying on a single central player such as PayPal.
The New York Times report on Facebook project employees said that most corporate instantaneous products are likely to be a currency linked to the value of traditional currencies, according to the Bloomberg report cited earlier.
Facebook is already looking at determining the value of its encryption currency to a basket of different currencies, including the dollar, euro and other national currencies that are held in Facebook accounts. Facebook is already repairing the messaging infrastructure that links three of its features – Messenger, WhatsApp, and Instagram. However, it remains to be seen how much Facebook controls its currency. If Facebook becomes responsible for each transaction and user tracking, it will need traditional centralized systems such as PayPal.
However, dealing with exchanges, exchanges will take at least some regulatory burden on Facebook, because exchanges will be responsible for keeping digital currencies and verifying and checking customers.