New York Times reported that Facebook is initiating its own cryptocurrency. Facebook’s cryptocurrency will merge with its Whatsapp Messaging App, it will permit the users to make electronic cash to their family and friends in any other countries. In Times reports, it was stated that they confirmed it with five unidentified people who have briefed about this assignment. The other famous cryptocurrencies are free against all standard currencies. But Facebook on the other hand, working to attach its crypto with the National currencies. This step of Facebook will provide more solidity to its Whatsapp coin without having a partnership with any other Country’s Financial Institutional.
The Times reported that other messaging apps are also working on cryptocurrencies, not only Facebook. The two other messaging apps like Telegram and Signal, known for providing privacy to their users are also functioning on launching their own crypto. These will be like more conservative cryptocurrencies and not like the standard currency.
The Times stated in their reports that Facebook’s work is so solid on the crypto assignment, so they can easily precede cryptocurrency exchanges about listing their crypto. But, there is one thing isn’t there in the reports of Times, that’s how Facebook will solve the basic issue of a tradeoff between decentralization and accessibility that has tormented the current cryptocurrencies.
Bitcoin and Ethereum blockchain system don’t have central power, which means when there is a threat to the users that they will suffer 100% in case of loss and stealing of their coins. The hard drive in which users have their coins and if it gets damaged, the user will lose everything, if the user doesn’t have a backup. If a hacker attacks the user’s system and robs their coins, the user will have no option to restore it.
Bitcoin Company doesn’t have any policy to get back the lost coins, for fraud, and for closing these types of fraud happens to the user. Now the Whatsapp users require a higher level of experience to enter the world of Bitcoin. Off course, Facebook will do everything to prevent all kinds of things to secure the payment of their users by installing safe payment software, policing the Whatsapp’s payments for stopping the fraud activities, and giving support to cryptocurrency by its Financial systems. But all these activities will be problematic for Facebook to handle out to their control.
Cryptocurrencies are open to all and that’s why anyone can gain, but it is without any restrictions like other normal currency payments. The government will make Facebook users, to provide law enforcement records, restore fraud activities, and does follow other banking regulations just like the normal world currency. Facebook needs to hire third-party developers to follow these regulations. Whatever, the result of this, but Whatsapp coin is looking like a normal payment service.