Facebook Is Working On a New Cryptocurrency For WhatsApp Payments

An anonymous reader quotes a report from The New York Times: Some of the world's biggest internet messaging companies are hoping to succeed where cryptocurrency start-ups have failed by introducing mainstream consumers to the alternative world of digital coins. The internet outfits, including Facebook, Telegram and Signal, are planning to roll out new cryptocurrencies over the next year that are meant to allow users to send money to contacts on their messaging systems, like a Venmo or PayPal that can move across international borders. The most anticipated but secretive project is underway at Facebook. The company is working on a coin that users of WhatsApp, which Facebook owns, could send to friends and family instantly.

The Facebook project is far enough along that the social networking giant has held conversations with cryptocurrency exchanges about selling the Facebook coin to consumers. Telegram, which has an estimated 300 million users worldwide, is also working on a digital coin. Signal, an encrypted messaging service that is popular among technologists and privacy advocates, has its own coin in the works. And so do the biggest messaging applications in South Korea and Japan, Kakao and Line. The messaging companies have a reach that dwarfs the backers of earlier cryptocurrencies. Facebook and Telegram can make the digital wallets used for cryptocurrencies available, in an instant, to hundreds of millions of users. Most of them appear to be working on digital coins that could exist on a decentralized network of computers, independent to some degree of the companies that created them. Facebook reportedly has more than 50 engineers working on their cryptocurrency. Their project is being run by former president of PayPal, David Marcus, and started last year after Telegram raised $1.7 billion to fund its cryptocurrency project. 'The five people who have been briefed on the Facebook team's work said the company's most immediate product was likely to be a coin that would be pegged to the value of traditional currencies,' NYT reports, citing a report from Bloomberg. 'A digital token with a stable value would not be attractive to speculators -- the main audience for cryptocurrencies so far -- but it would allow consumers to hold it and pay for things without worrying about the value of the coin rising and falling.' The coin should come out in the first half of the year.

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