Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Sources Say

bloomberg.com

Post reply on HN
Print view View original

71–80 of 132 posts

Re: Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Sources Say

#71

Post by freddie_mercury »

Scoundreller wrote: post #15
wonderwonder wrote: post #10

Pretty interesting, Facebook generally does not have a reputation for 'jumping on the bandwagon' so I assume they have thought this through. Many of their whatsapp users live in very poor areas that are not traditionally served by banks. If they integrate a wallet into the app it may allow for a real use case. They would still need to provide some sort of 'convert to fiat' functionality for those same unbanked users…

> Many of their whatsapp users live in very poor areas that are not traditionally served by banks. Bingo. Remittances are still expensive. Basic bank accounts are still out of reach for many. Any user with cash could become a convert-to-fiat provider. Before Western Union had to signup shops, now you can go through your friend lists to find someone you already know and trust.

High remittance costs are primarily caused by two things: exchange rates and KYC/AML compliance. I don't see how this would address either of those things.

Even with large & relatively liquidity cryptocurrency the spread to covert to local currency is large.

Right now if I want to get rid of a Bitcoin and get Vietnamese Dong I see rates from 89,286,016.80 to 90,135,312.89. The actual price according to Google is 93,851,364.64. So you're losing 4%, which is already comparable to a traditional remittance (the World Bank says 5% is the average cost for educated users).

Except this new cryptocurrency would be less popular and less liquid than Bitcoin, so the spreads would be higher.

Re: Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Sources Say

#72

Post by dagaci »

blahblahblogger wrote: post #60
bhalperin wrote: post #3

Call it a “cryptocurrency” if that makes it sound sexy, but this is still centralized — it’s effectively the same as the (already existing) Messenger Payments.

Honest question, but does a cryptocurrency have to be decentralized for it to be determined a cryptocurrency? I didn't think that was the case. It may be more in the spirit of crypto but I don't think it's a hard requirement?

The problem with centralisation is that it enables a kind of corruption: entities can engage in both financial censorship and arbitrary money printing.

That being said a cryptocurrency does not have to be decentralised.

However it is very important to understand the difference.

Today even decentralised cyptocurrencies depend on centralised-exchanges, and the consequence is that despite the constraints built into a blockchain algorithm are able to sell unlimited amount of the crypto to users without actually being in possession of the algorithm-limited crypto.

Re: Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Sources Say

#73

Post by Geee »

t0astbread wrote: post #68
Geee wrote: post #65

Earlier quoted context omitted.

Heard of the hype cycle? https://en.wikipedia.org/wiki/Hype_cycle They're not as clueless as you are about cryptocurrencies. It's not going to be centralized.

If WhatsApp is the only client, FB can still control it since WhatsApp is proprietary

It's not going to be the only client, but Facebook has the network effects working for them, so it would be pointless or more difficult to use another client. In addition, they'll build services on top of it that are tightly tied into their ecosystem.

Re: Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Sources Say

#74

Post by votepaunchy »

rakoo wrote: post #39
tzfld wrote: post #17

Earlier quoted context omitted.

TBH at this point I have more trust in a centralized cryptocurrency backed by a large corporation than in a decentralized one.

"cryptocurrency" refers to a very specific type of currency that happens to rely on cryptography, but the defining aspect is its decentralization.

You should learn the meaning of cryptography!

https://en.m.wikipedia.org/wiki/Cryptography

Re: Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Sources Say

#75

Post by thecatspaw »

viach wrote: post #63
thecatspaw wrote: post #56

Earlier quoted context omitted.

And how is that different when facebook controls all the mining nodes?

Where can I see the source of your information where it is said they will control all the mining nodes and there will be mining?

Admittedly, nowhere, after all this whole article is based on speculation.

But I really doubt that facebook is going to release a coin which they cannot control.

What is their case for creating a coin if they have no control over it?

Re: Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Sources Say

#76

Post by rebuilder »

coralreef wrote: post #14
afasfdsasdf wrote: post #13

Earlier quoted context omitted.

If facebook controls the mining, then they have the power to change the blockchain, which in effect would defeat the whole point. They effectively have a database with some very unnecessary complexity. It wouldn't bypass state controls because they would still need to abide by laws.

I don't think the purpose is to create their own money, but to create a vehicle that takes advantage of crypocurrency-like protocols. For example, perhaps they'll let users generate their own keys, thereby letting everyone transact freely with each other. This may allow FB to wash their hands of KYC laws except for those depositing and withdrawing fiat directly.

Facebook would still be maintaining the ledger, which means there's no such thing as letting everyone transact freely with each other. It's like the bank saying they're not liable for KYC procedures because it's their customers who initiate the transactions.

Re: Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Sources Say

#77

Post by randomacct3847 »

I think we underestimate how “mainstream” digital currencies could be if the UX is right. In a lot of ways we already deal with “centralized” digital currencies already in the form of loyalty points with airlines, hotels, food/coffee chains, grocery stores and gift cards that can only be spent at specific merchants I.e. currencies that have some value and can be used to pay for things.

Re: Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Sources Say

#78

Post by patrickaljord »

yason wrote: post #43

Cryptocurrency mentioned. Blockchain mentioned. I really should've bought a card for this buzzword bingo. Is this just PR or are they genuinely so clueless? If the former I wonder if they missed the shift this year where cryptocoins stopped being the coolest kid in the town anymore. If a centralized company wants to roll out electronic payments through its services it can just, you know, do that. They don't need bloc…

> If a centralized company wants to roll out electronic payments through its services it can just, you know, do that.

Not it can't. There's a world outside of the US where whole businesses run on WhatsApp. There is no solution, simply none today that exists to allow anyone from any country to register and start making and receiving payments. Not Stripe, not Paypal, none. If Facebook can deliver something that can then be exchanged for real dollars, that could be huge. If a person in a small village in Peru can just start receiving money from another person in another country and that the only barrier of entry is having WhatsApp installed on your phone, this could get ridiculously successful overnight.

Re: Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Sources Say

#79

Post by arisAlexis »

yason wrote: post #43

Cryptocurrency mentioned. Blockchain mentioned. I really should've bought a card for this buzzword bingo. Is this just PR or are they genuinely so clueless? If the former I wonder if they missed the shift this year where cryptocoins stopped being the coolest kid in the town anymore. If a centralized company wants to roll out electronic payments through its services it can just, you know, do that. They don't need bloc…

you are suggesting that there is no value in blockchain and that cryptocurrency is not a good idea so Facebook and it's famous VP of Messenger and other Paypal execs were just trying to get into the hype. Or you can take another look and maybe the technology has something to offer. Don't mistake Facebook for an silly company.

Re: Facebook Is Developing a Cryptocurrency for WhatsApp Transfers, Sources Say

#80

Post by jamespo »

patrickaljord wrote: post #78
yason wrote: post #43

Cryptocurrency mentioned. Blockchain mentioned. I really should've bought a card for this buzzword bingo. Is this just PR or are they genuinely so clueless? If the former I wonder if they missed the shift this year where cryptocoins stopped being the coolest kid in the town anymore. If a centralized company wants to roll out electronic payments through its services it can just, you know, do that. They don't need bloc…

> If a centralized company wants to roll out electronic payments through its services it can just, you know, do that. Not it can't. There's a world outside of the US where whole businesses run on WhatsApp. There is no solution, simply none today that exists to allow anyone from any country to register and start making and receiving payments. Not Stripe, not Paypal, none. If Facebook can deliver something that can the…

I presume the point was why do FB / WA need to use the blockchain?
Post reply on HN