While the bitcoin is unable to remain stable, some of the largest internet companies hope to do so with their own virtual coins. This year, Facebook, Telegram and Signal, among others, will launch their own coins.
The New York Times writes this in an extensive analysis of the current crypto market. All companies hope to change and stabilize the crypto market. In the short term, these developments will in any case lead to a greater increase in the number of different crypto currencies. In the long term, mainly due to the reach of the large Internet companies, it may lead to a consolidation of the market.
These new digital coins make it easier to make international payments. Especially in developing countries it is sometimes very complicated for ordinary people to buy a bank account at all, let alone to make online purchases. To make it easier for people to spend money on their platforms, companies want to launch their own coins.
Facebook has a large team on the project, states the New York Times. The company wants to establish blockchain at the base of its cryptic currency and thus make financial transactions possible without having to rely on one central player such as PayPal or Visa. It is striking that Facebook wants to link the value of the currency to that of the traditional currency, so that the virtual currency has a constant value.
Crypt currencies do not have that link, but depend entirely on investor confidence. As a result, the value fluctuates considerably, as we saw at the bitcoin at the beginning of last year. Other companies working on their own crypto currencies – including Telegram and Signal – are looking at more traditional systems and opting for a decentralised system that does not rely on other currencies.
Available this year
Whatever their perspective, it is clear that the various coins will be available this year. According to the New York Times, Facebook is currently negotiating with the largest crypto exchanges to spend its currency there. That means that the management of the currency of not falls on the account of Facebook, which creates less regulatory pressure. At the same time, it is more difficult for the company to make money from the crypto currency. Telegram and Signal have also already informed investors that they will be ready for launch in the coming months.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.