Eight months ago, the encrypted messaging service Signal
announced that its users could make transactions with the crypto
MobileCoin. Within the company itself, one wonders about the reaction of the American regulator, which immediately draws a parallel between encrypted messaging, cryptocurrency and illicit activities.
After a test phase, the payment service has now been available since November across the globe.
Risks of criminal activity on the Signal platform
“I wish for a world where not only can you be sure that your privacy is respected when you speak to your therapist on Signal, but also have the option of paying for it on voicemail. “
So says Moxie Marlinspike, founder of Signal, about the implementation of crypto transactions on messaging. Why MobileCoin rather than another currency? Because its carbon footprint is negative and it is very fast and above all untraceable.
However, this integration was done with relative discretion, going through a test phase in the United States. Signal did not wish to make an announcement for fear that the American regulator would come to put its nose in their business. Recently, MobileCoin has noticed a massive adoption of its currency, notably thanks to Signal, going from a few dozen transactions per day to hundreds of thousands.
The goal with MobileCoin is to make payments as anonymous as cash payments. The main fear of financial authorities is to let Signal users pay for illicit activities, such as buying drugs, laundering money or human trafficking.
Regulation: who wants the skin of encrypted messaging?
Other messaging services have already considered crypto payment solutions. We think in particular of Facebook with Novi. What makes Signal different from the tech giant? This is a fully encrypted messaging system that guarantees complete confidentiality. By integrating this kind of function, Signal automatically places itself under the regulator’s radars.
The First Amendment to the US Constitution does not at all guarantee the protection of the anonymity of transactions, and this is why financial authorities are taking a very close interest in these services to apply very strict penalties.
For now, the future of encrypted messaging in cryptocurrencies could look complicated, especially if they clash with the interests of the US government.
Source: The verge
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