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Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Report Says (bloomberg.com)

Posted by msmash on from the shape-of-things-to-come dept.

Facebook is working on making a cryptocurrency that will let users transfer money on its WhatsApp messaging app, focusing first on the remittances market in India, Bloomberg reports. From the report: The company is developing a stablecoin -- a type of digital currency pegged to the U.S. dollar -- to minimize volatility, said the people, who asked not to be identified discussing internal plans. Facebook is far from releasing the coin, because it's still working on the strategy, including a plan for custody assets, or regular currencies that would be held to protect the value of the stablecoin, the people said.

44 comments

  1. Iran and North Korea by reanjr · · Score: 1

    Yeah, this will last until the first news story hits about Facebook being used to launder money to Iran and North Korea. It doesn't matter if Facebook is legally responsible, the PR implications will cause their collective heads to spin.

    1. Re:Iran and North Korea by reanjr · · Score: 1

      ...or even worse, laundering money to Russia. Man, would that play well...

    2. Re:Iran and North Korea by Anonymous Coward · · Score: 0

      It would only affect those left wing progtards who still think Russia is a real story.

    3. Re:Iran and North Korea by fahrbot-bot · · Score: 1

      ...or even worse, laundering money to Russia. Man, would that play well...

      Don't worry, we already have a guy, and his family, for that...

      --
      It must have been something you assimilated. . . .
    4. Re:Iran and North Korea by fahrbot-bot · · Score: 1

      ... used to launder money to Iran and North Korea. It doesn't matter if Facebook is legally responsible, ...

      In the US, they probably would be legally responsible -- for aiding terrorists, helping to evade sanctions, or some other technicality.

      --
      It must have been something you assimilated. . . .
    5. Re:Iran and North Korea by Anonymous Coward · · Score: 0

      Are you kidding?

      The feds would LOVE it if they could just subpoena Facebook for any data they have on the user sent money from a bitcoin wallet of their choosing.

      It's any investigator's dream come true to just take the wallet from say a phishing email then say "hey Facebook, we want the name address, social map, and facil recognition data for whoever this belongs to, and you can't tell anyone we asked you for it or else".

      If anything this will make them mad on the basis that only a complete idiot would let facebook know anything about a bitcoin wallet you used for illegal things so they'll probably only catch like the dumbest 80% of criminals and have to actually work hard to seem to make progress thereafter.

    6. Re:Iran and North Korea by CohibaVancouver · · Score: 1

      It would only affect those left wing progtards who still think Russia is a real story.

      Look you Russian Troll - I know it's damn cold in Moscow today which is likely slowing down your vodka-addled brain, but if you want your fake posts to at least appear credible you should stop posting as an Anonymous Coward.

  2. why!? by Anonymous Coward · · Score: 0

    Why would any sane person tie it to USD? That is faaaar from stable!

    1. Re:why!? by jfdavis668 · · Score: 1

      They should tie it to the Venezuela Petro.

    2. Re:why!? by Applehu+Akbar · · Score: 1

      Why would any sane person tie it to USD? That is faaaar from stable!

      All a ‘stablecoin’ is, is digital scrip. Pegging it to the dollar gives it the ability to be used in blochian transfers while not being treated as a digital investment. Unlike the restricted-supply coins, it should be usable as currency.

    3. Re:why!? by Anonymous Coward · · Score: 0

      All a ‘stablecoin’ is, is digital scrip. Pegging it to the dollar gives it the ability to be used in blochian transfers while not being treated as a digital investment. Unlike the restricted-supply coins, it should be usable as currency.

      How is this any different than operating a money transmitter business dealing in US dollars with all of the rules and regulations that come with that? Does Facebook think that adding some crypto-currency razzle-dazzle is going to exempt them from scrutiny by the Financial Crimes Enforcement Network?

  3. Not distributed so why Crypto? by goombah99 · · Score: 2

    The point of crypto currency is to act as a distributed ledger without the need for a central authority. If you are using what's app to transmit a message then it is being 2-way authenticated by facebook and passing through facebook and even logged by facebook. Adding a transaction record would be nothing. SO facebook could just make it a check on the bank of facebook and be done with it. Or if being a bank is a problem then just call it "flooz" or "beans" or send a share of a T-bill mutual fund.

    --
    Some drink at the fountain of knowledge. Others just gargle.
    1. Re:Not distributed so why Crypto? by Anonymous Coward · · Score: 0

      The point of Bitcoin is to use a distributed blockchain ledger, a copy of which is held and verifiable by all participants, in order to avoid needing to trust a central authority.

      You do not need to set things up this way. If you are willing to trust a central authority (like Facebook) to hold the only copy of a centralized blockchain ledger that all particpants can read from and write to, then you can do just that. Still verifiable by all, so that Alice still knows that Bob received the Facecoin rather than Mary.

      Blockchain ledgers can be centralized or distributed depending on the needs and the goals.

    2. Re:Not distributed so why Crypto? by Anonymous Coward · · Score: 0

      You do not need to set things up this way. If you are willing to trust a central authority (like Facebook) to hold the only copy of a centralized blockchain ledger that all particpants can read from and write to, then you can do just that.

      Yeah, we call that a database, not a blockchain, and it's nothing new. What does blockchain add to this? Absolutely nothing.

      Still verifiable by all, so that Alice still knows that Bob received the Facecoin rather than Mary.

      When a single party controls the record of all transactions they can alter it however they please. Verification is implicit with trust and meaningless without it.

      Blockchain ledgers can be centralized or distributed depending on the needs and the goals.

      Just because something can be done doesn't mean that it makes sense. A pig with lipstick is still just a pig.

  4. Linden dollars by Anonymous Coward · · Score: 0

    Why invent something new, just send Linden dollars or XBox store credits?!

    Stablecoin you say? Sounds like Paypal tokens, or XBox credits, or Nintendo Store Credits, or.... well pretty much any pseudo token used to hide the terrible exchange rate used for transfers.

    And Whatapps, that's the messaging app used by Jared Kushner and the Saudi Bone Saw Prince and his bone saw henchmen isn't it? It's supposed to be encrypted. Gee I wonder how they got both sides of a video conference call in which a Washington Post journalist was dismembered while being kept alive by a Saudi military doctor,... all as a Saudi prince gave orders..... Couldn't possibly be WhatsApp because that's encrypted, Zuckerberg promises it is.

    Yeh, I'm sure this is a crypto currency and is totally legit this time Zuck.

    1. Re: Linden dollars by Anonymous Coward · · Score: 0

      You might not understand that: if you are the owner of the app, you have complete control of the input and output. Facebook could have even "actually had encryption" for everyone else, but selectively turned it off for a few phones. Have you ever watched Outer Limits? It's like that. "We control all that you see and hear."

    2. Re:Linden dollars by 110010001000 · · Score: 1

      All of these centralized messaging systems are "encrypted", but the central system has the key so they can decrypt it. There is no reason to have centralized messaging systems in 2018, but people never understood the need for decentralized XMPP style systems. So now we have all these messaging systems that are owned by corporations. This includes Apple and Google too. Don't think they don't have your messages too.

    3. Re:Linden dollars by Frederic54 · · Score: 1

      I thought MBS was seeing it live via Skype, not whatsapp, and isn't MS record audio and a screenshot of Skype every few seconds?!?

      --
      "Science will win because it works." - Stephen Hawking
    4. Re: Linden dollars by nazsco · · Score: 1

      which reputable source gave the whatsapp connection? some call it cctv video.

  5. 2.3 Billion users with crypto. Crypto explosion! by Anonymous Coward · · Score: 0

    wow

  6. Big pile of Nope on that one by SuperKendall · · Score: 1, Insightful

    No way am I buying into BitBook or FaceChain or whatever they call it.

    It also brings to mind a very serious question - do they intend to mine their currency using the browsers and apps of people on Facebook?

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Big pile of Nope on that one by Pinky's+Brain · · Score: 1

      These things aren't mined. Every crypto-coin created is is paid for with real currency, they put that money in say a money market fund or short term US treasuries and when demand dries up and the coin's value drops they cash those in and buy the coin back (essentially destroying it).

      It's very similar to full reserve banking. Ignoring regulation you could do it with a centralized system more easily than cryptocurrency, but regulators are treating crypto with kid's gloves ... which is the big pull.

    2. Re:Big pile of Nope on that one by Anonymous Coward · · Score: 1

      But you would buy an Apple cryptocurrency, right?

  7. Another Winklevoss Copy? by Anonymous Coward · · Score: 0

    Just a few months ago... https://news.slashdot.org/story/18/09/10/1846256/new-york-state-approves-two-dollar-based-cryptocurrencies :)

  8. It will be a stable coin tied to the US dollar by Anonymous Coward · · Score: 0

    Big difference between it and bitcoin

  9. Quote "No one likes a lying asshole" by Anonymous Coward · · Score: 0

    https://www.theregister.co.uk/... & ain't it the truth.

  10. Money money money money money... by Anonymous Coward · · Score: 0

    Sweet... one more abstraction of value for anyone to give a damn about

    How useful

  11. The concept of stablecoin... by Anonymous Coward · · Score: 0

    if you run one are you not supposed to have capital to cover the value? I take it that Tether is the largest at the moment and they are being very evasive when asked where the money is. There are also a whole bunch of clones that have popped up now that tether has been fairly successful. Be very wary :P

  12. Call it the Zuckerfund by WCMI92 · · Score: 1

    Because Zuckerber'g's currency is information. He has it. Facebook is an elaborate identity theft scheme.

    --
    Corporatism != Free Market
    1. Re:Call it the Zuckerfund by Anonymous Coward · · Score: 0

      Well, it's like they say; there's a zucker born every minute.

    2. Re:Call it the Zuckerfund by Anonymous Coward · · Score: 0

      Is that how often the assembly line produces them? ... Fascinating.

    3. Re:Call it the Zuckerfund by Anonymous Coward · · Score: 0

      Well, it's like they say; there's a zucker born every minute.

      Oooh, that's good. I was going to call it the DumbFuckCoin, but the Zucker is so much better. Maybe will can call the community (that uses the Zucker as it official currency) Dumbfuckistan.

  13. Say what? by goombah99 · · Score: 1

    and what is stable and liquid if not the US dollar?

    --
    Some drink at the fountain of knowledge. Others just gargle.
    1. Re: Say what? by Anonymous Coward · · Score: 0

      well they cud easily make one chain per currency and then dip their greedy sticky little fingers in the exhange rate. And i guess they will skim atleast 4% of any transaction anyway.
      Or just tie it to gold.
      Trump is going to fuck up usd soon anyway so better stay away from it.

    2. Re: Say what? by Anonymous Coward · · Score: 0

      How's the weather in Sevestapol, commrade Troll?

  14. Absolutely not by ilsaloving · · Score: 4, Funny

    Are they serious? After everything they've done?

    Below is a list of things I would trust sooner than I would trust Facebook to be anywhere near anything as sensitive as a financial transaction:

    -Tap water from Flint
    -A rattlesnake with a "pet me" sign
    -free drinks from Bill Cosby
    -gas station sushi
    -emails from Nigerian Princes
    -A bigfoot sighting

    1. Re:Absolutely not by Anonymous Coward · · Score: 0

      Does NOT matter ONE SINGLE FUCK what they've already done or not done.
      What DOES matter is that there is ZERO FUCKING REASON
      that ANYONE needs to be developing and deploying their own
      private coins, let alone CENTRAL "STABLE" SHITCOINS like this.

      Use goddamned fucking Decentralized Distributed P2P Private Privacy Coins
      like Zcash ZEC or even the non-cryptographically private non-scalable
      Monero XMR if you have to, or just use Bitcoin Cash BCH, or even
      fucking Bitcoin BTC.

      "Facebook?".... "Stable" coins where YOU have the power and control?.... LOL, get fucking real.

    2. Re:Absolutely not by Anonymous Coward · · Score: 0

      Why in the fucking world would you choose something like XMR/BTC/BCH/XRP/ETC when they can lose 90% of their value overnight? I agree that everyone producing their own stable coin is fucking stupid, but there is an actual point to stable coins...which is stability. I buy a hundred bucks worth today, and I guess as long as FB is still operating the blockchain in a decade (yeh right), those stable coins will still be worth a hundred bucks.

    3. Re:Absolutely not by phantomfive · · Score: 1

      fwiw they already do financial transfers. The only thing extra here is a cryptocoin, which doesn't particularly make sense.

      --
      "First they came for the slanderers and i said nothing."
  15. % of Income? by Fluffymuffin+Cocobut · · Score: 1

    I donated $30 this year - as a % of my overall income I expect I am several dozens of times more awesome than Facebook - plz snd me all yr personal info k'thks

    --
    imagine a soft, buttery paw gently pressing down onto a sleeping soldier's face. forever.
  16. No doubt it will be completely anonymous by Anonymous Coward · · Score: 0

    Facebook would never countenance selling your financial information to the highest bidder ....

  17. Left wingers like George W. Bush by Anonymous Coward · · Score: 0

    Bob Mueller, left winger. Rod Rosenstein, left winger. Prison warden at ADX Florence, left winger. Hangman at gallows, left winger. Yep, I guess you're fucked Trumptards. Reality has a left wing bias, you backed a traitor.

    1. Re: Left wingers like George W. Bush by Anonymous Coward · · Score: 0

      Hey, if Hillary and the FBI group up to fund a "dossier" and lie to judges on warrants repeatedly about it, making a mockery of the judges and making it a kangaroo court, would you care? No.

  18. krypto kurrency by Anonymous Coward · · Score: 0

    kryptolulzokurrency