Facebook and Telegram hope to succeed.
Large companies like Facebook, Telegram and Signal are trying to succeed where cryptocurrency startups failed, offering users an alternative digital currency within their instant messengers. All projects are under development.
Next year, Facebook, Telegram and Signal are planning to release new cryptocurrencies that allow users to send money to their contacts.
The most anticipated project is under development on Facebook. The company is working on a currency that WhatsApp users can instantly send to friends and relatives.
All these new projects are focused on the market, which has already gained popularity among consumers. Venmo shot in the USA, making it easier to send payments through the phone. In China, many people use a payment system that runs inside the extremely popular WeChat messenger.
“Something incredible is happening in the cryptomere. Each company has its own advantages in this battle, and it will be very interesting to watch this, ”says Eric Meltzer, co-founder of Primitive Ventures.
Like bitcoin, new cryptocurrencies will simplify the transfer of money between countries; This is especially important for developing countries where it is difficult for ordinary people to open a bank account and buy things online. In addition, it is discussed that new cryptocurrencies will not rely on the energy-intensive mining process.
However, messengers are likely to face the same regulatory and technological obstacles, because of which Bitcoin could not become mainstream. The lack of centralized management has made cryptocurrency attractive in the eyes of fraudsters and criminals, and the structure of computer networks that manage them makes it difficult to process a significant number of transactions.
Companies invest large resources in their projects. In Facebook, more than 50 developers are working on the project, Telegram has raised $ 1.7 billion of investments.
Facebook is considering several ways to use the blockchain, because it does not want to rely on one central player like PayPal or Visa.
People familiar with the Facebook project have shared that the company will most likely release a currency that will be pegged to the value of traditional currencies. Thus, it will cease to attract speculators, and users will not worry about the fall or increase in its value. Facebook is planned to tie the value of its cryptocurrency to several foreign currencies, not just the dollar.
The big question facing Facebook is how much control a company will have over digital currency. If Facebook confirms each transaction and keeps track of each user, it is unclear why she needs a blockchain system, rather than a regular centralized system like PayPal.
But if Facebook releases a currency that is not fully controlled, it will be difficult for the company to make money from transactions, and criminals will find it easier to use the currency for illegal purposes.
The currencies of other messengers are likely to look like traditional cryptocurrencies - with a galloping cost and a decentralized system.
Telegram is known for its conflicts with the government. By releasing its digital currency, the company will help people who cannot use the traditional financial system. Last month, Telegram sent a letter to investors in which it reported that the project was 90% completed, and also promised to release a trial version of the system within a few months.
Signal is developing the smallest project - Mobilecoin. Last year, they attracted $ 30 million in investments. The currency from Signal is a favorite of many enthusiasts due to strict privacy controls. However, Mobilecoin has to solve many problems that have prevented other cryptocurrencies from being successful.