According to a recent report published by The New York Times, Facebook is planning to launch a cryptocurrency for its WhatsApp userbase. By doing so, the movement of money within a country and across the globe can be made easier for the general public. Besides Facebook, messaging giants Telegram and Signal are also reportedly targeting to launch their own cryptos. For banks, this news comes off as a huge “RED ALERT” and here’s everything you need to know how this will change the entire crypto image.
Straight off the bat, this move taken by Facebook targets the remittance industry. In the current frameworks provided by outlets like Western Union, the cost associated with sending money across borders is too slow and too expensive. Sending money across the globe even takes days through these traditional frameworks. If a global framework is provided by WhatsApp which is powered by cryptos, the entire remittance framework of the world can be changed. So, for the remittance industry, of which banks are an integral part, Facebook’s coin is a huge red alert.
When it comes to the banks, we recently saw the Venezuela fiasco took place as the Bank of England refused to give back the gold held by it in its custody, owned by Venezuela. If it was cryptos, things would not have been this difficult for Venezuela owing to the aspect of decentralization, with no single party being in control as seen in the case of banks, and they are much easy to liquidate.
SEE ALSO: Bitcoin is Not Harnessing, It’s Replacing Western Union & Remittance Industry
Cryptos have emerged poised against the traditional financial system of the world that has been put in place by the banks. The economic recession of 2008 created the ripple that resulted in the tide of cryptos. But since their eruption, the connotation attached with bitcoin, the world’s leading cryptocurrency, and other coins has largely been negative in the media and in the eyes of the general public. The bad image that is associated with cryptos is due to the illegal activities linked with them such as money laundering, usage by criminals, and usage in the dark web (an online marketplace for illegal activities like drug selling and buying, child pornography and much more dangerous things).
SEE ALSO: JPM Coin is a ‘Failed’ Attempt to Redefine the Ideology of Bitcoin & Cryptos
With Facebook’s crypto coin, the possibilities offered by cryptos apart from their negative usage will be put out in the open in front of everyone. The public which has not been able to get in touch with cryptos will get its first taste of the crypto world. Faster global transactions at much lower costs and ease of use in terms of money handling will help masses get aware of the ease offered by cryptos. With this, the shortcomings associated with the banking system, through which global transactions often take days to complete along with heavy transaction fees, will be exposed. People will get more aware of the overheads involved with banking in the form of taxes unnecessary heavy transaction fees. As promoted by the well-renowned crypto expert Anthony Pompliano, the movement “Long Bitcoin, Short the Bankers” will get stronger.
Estonia just ordered the Danske Bank branch to close that was involved in one of the largest money laundering schemes in history.
The majority of criminals aren’t using Bitcoin to launder money, they’re using US dollars.
Long Bitcoin, Short the Bankers!
But the coin being launched by WhatsApp will also have to deal with its regulatory framework. If exchanges are going to handle the transactions of WhatsApp coin and there is no filter put in place by the parent company, criminals will likely find their way to use this currency in order to perform illegal activities. Solving this puzzle will be a challenge for Facebook.
SEE ALSO: JPM Coin is a ‘Bargain Before Death’ of Financial Institutions
Overall, the wave of trust which has largely been on the banking side will shift towards cryptos after mainstream exposure of their capabilities. Seeing cryptos in the action will trigger more of its adoption and as a result, even more capital will be flowing into this space than ever before. The technology of blockchain which has been underlying the world bitcoin and cryptos will also get even more highlighted. This is also the exact technology lying behind the idea of decentralization, removing the control of a central controlling party from any framework. The wave of decentralization will get more intense as a by-product. Facebook, in this regard, is already looking into exploring the blockchain tech for improving its login mechanism through Facebook connect. The idea is to handle the privacy concerns linked to Facebook’s data handling.
SEE ALSO: Can Facebook Connect on Blockchain Save Zuckerberg?
As of now, the idea of Facebook’s coin is being kept limited to the WhatsApp user base only. But if Facebook, which is an advertisement-based platform, decides to incorporate a crypto framework in its economic model as well, things could change drastically for the content creators on the platform. Just like Brave, which uses the Basic Attention Token (BAT) for its economic workflow, if a crypto framework is established for the users, publishers, and advertisers, overheads costs caused by middlemen ad-exchanges can be taken out of the picture completely improving the experience of the platform for everyone. For now, we’ll have to wait and see if Facebook ever decides to do so.
Social media giant Facebook, which had 2.27 billion monthly active users in the third-quarter of 2018, adopting cryptos will be counted as one of the major milestones in the digital currency arena. If Facebook coin launches anytime soon providing efficient worldwide financial services, banks need to be afraid. Very afraid. A strong crypto wave is already on its way!
Binance DEX will not have access to your coins, unless you disobey rules
Twitter user @ImShillGates has brought to the attention the fine print on the upcoming Binance Decentralized Exchange (DEX) which states that your funds can in fact be taken from you by Binance.
In a recent tweet by @ImShillGates, the users posts an image with the fine print of the Binance DEX. The terms clearly state that “your wallet is not accessible by Binance, and Binance will not keep your Keystore files, passwords, mnemonic phrases and/or private keys”
However, on the same page the terms and conditions go on to explain what prohibit uses are not allowed on the DEX, followed by a conclusion paragraph stating that Binance has the right to “confiscation of any digital tokens obtained in any prohibited use”. The paragraph also states that “Binance may, at its sole and absolute discretion, seize and hand over your property to law enforcement or other authorities where circumstances warrant”.
Binance User: Hey @cz_binance, on your decentralized exchange, it says you don't have access to our coins, but then at the bottom, it says u can seize our coins if u see fit. Which is it?@cz_binance: Yes pic.twitter.com/BGah4WyFlK
— SHILL GATES (@ImShillGates) April 24, 2019
The main concern for users of Binance DEX will be surrounding how decentralized the new exchange really is. While the wording appears to be targeting users who attempt to defraud or scam other users or sell stolen tokens, the potential to start seizing funds for other reasons remains a possibility based on the discretion of Binance. While the Binance DEX maybe an attempt to be decentralized, perhaps the DEX is not really decentralized at all.
If the Binance DEX was a true DEX they couldn’t take your coins or keys.
— NATENEX (@NAT3N3X) April 25, 2019
They aren’t your friends .. they will confiscate it all..not a true DEX
— CryptoEagle (@rhb_3000) April 25, 2019
That fine print is tricky!🤐🤐🤐
— KUBO_OF_CLASS-83 (@83Kubo) April 25, 2019
XRP Price Needs a Small Miracle to Stay Above $0.3
As the Bitcoin price continues its slightly unexpected negative trend, the alternative markets are scrambling to make up lost ground. That is much easier said than done, as none of the top markets is able to contain the losses right now. The XRP price is going down a very slippery slope, as a drop below $0.3 seems very plausible all of a sudden.
XRP Price Starts to go Downhill Fast
In the volatile world of cryptocurrencies, tokens, and digital assets, there are always specific market trends which might not make too much sense. Even though Bitcoin is currently down by a few percent, the alternative markets easily lose 5% or more. Even XRP is facing tremendous pressure right now, which is not necessarily something people had expected.
To be more specific, the XRP price has lost 6.86% as it now sits barely above $0.3. This is very different from the $0.325 level which was still in place until a few hours ago. Combined with the extra 4.52% loss in XRP/BTC, it quickly becomes evident things are not looking good. At this rate, XRP will easily drop below 5,000 Satoshi in the near future, which isn’t necessarily a promising development.
As the price woes continue to keep a lot of people engaged, the Twitterverse is looking at things from a different angle. Dsavino would love to see XRP supported by ErisX, although the company has not indicated such plans at this time. This unified platform for spot and CFTC-regulated futures products is worth keeping an eye on, even if it doesn’t support Ripple’s native asset.
You will soon recognize that #XRP is One Step Beyond…hopefully you will add it 👍🏻🍻
— Dsavino (@Dsavino13) April 24, 2019
There is another interesting observation brought to the masses by Mr. B XRP. He would like to remind people how RippleNet has been evolving as of late and how popular this technology has become in Japan lately. It is certainly a global expansion, although there is always more work to be done to improve upon the existing infrastructure.
… we are very close. BULLISH 😈
— Krypto Kris (@KryptoKrisXRP) April 24, 2019
It will be interesting to see where XRP’s price will end up at in a few hours from now. A dip below $0.3 is not dramatic by any means, although it will undoubtedly trigger some mild panic. The XRP/BTC ratio, on the other hand, continues to take potshots every single day, regardless of the overall industry trend.
Bitcoin’s [BTC] security is 100 times more than that of Bitcoin Cash’s [BCH], says Litecoin creator
Charlie Lee, Creator of Litecoin [LTC] and Managing Director of Litecoin Foundation, spoke about projects that allocate mining rewards to developers, in an interview with Laura Shin for Unchained Podcast. He also opined about whether Litecoin’s vision still remained the same or not.
On projects that allocate a percentage of the block reward to developers, Lee stated that it was “okay” as long as the project developers were transparent on this subject, adding that in some cases, this was “needed”. He further stated that it was hard to find developers for Litecoin since, there were not enough funds to pay these developers.
[…] we work on raising money and using money to pay for developers but unlike ICOs or other projects we just don’t have millions sitting from selling our ICO tokens to fund these developers. So, yeah I think projects that do that it’s kind of needed […]”
However, Lee stated that for cryptocurrencies such as Bitcoin and Litecoin that really want to become decentralized money, there cannot be any centralized actions like using mining rewards to pay developers.
This was followed by Lee speaking about Litecoin’s vision and the coin’s use case. On this, Lee stated that the current vision was still “very similar” to the old one, seeing Litecoin as a complement to Bitcoin. He added that Litecoin’s raison d’être was not to replace Bitcoin, unlike some other coins that claim to be the better version of Bitcoin.
“[…] I think it’s trade-off. So, a lot of people don’t talk about the trade-offs people talk about how they have fees are cheaper […] people in support of Bitcoin Cash constantly talk about how Bitcoin Cash transaction fees are like a hundredth of that of Bitcoin but, you get what you pay for right […]”
He further added that Bitcoin’s “security was more than hundred times” that of Bitcoin Cash, irrespective of the hash rate being more or not. Lee remarked that one cannot “attack Bitcoin,” whereas Bitcoin Cash could be “eas[ily] be attacked,” adding that this factor was very important and also the reason for cheaper fees.