Privacy-focused messaging app Signal is reportedly using resources to develop a cryptocurrency payment service for its users.
Signal is considering integrating crypto payments into the app, according to a report by Casey Newton, founder of the technology newsletter service Platformer.
According to the report, Signal reportedly conducted pilot tests for such a token on Binance-backed Stellar-based cryptocurrency platform MobileCoin. Moxie Marlinspike, CEO of Signal, is acting as an advisor to the MobileCoin project, adding to speculation that the test could be a test run for later deployment in the messaging app.
The Platformer Report also found that Marlinspike downplayed these speculations and referred to the tests as “Design Explorations”. He added, “If we did decide to invest payments in Signal, we would try to really think carefully about how we did it. It’s hard to be completely hypothetical. “
However, according to Newton, former Signal employees are actively following the company’s necessary logs for the integration of MobileCoin with the messaging platform. In early January, MobileCoin tried to clarify its relationship with Signal:
To be clear, MobileCoin is very much not a signal. We are fans of their work, but we are not them. Moxie advises us, but Signal is a highly independent non-profit organization. We’d love them to use the technology we’ve made, but the choice is theirs and theirs only.
– MobileCoin (@mobilecoin) January 16, 2021
If the reports turn out to be true, Signal becomes the newest messaging service to enter the crypto and digital payments realm.
Facebook has changed its planned Diem project several times after intense regulatory setbacks.
Indeed, incorporating a privacy token into the Signal platform could put the company at risk of serious regulatory scrutiny. According to Financial News, financial services providers are already concerned about the looming regulatory blind spot caused by the migration of traders from WhatsApp to Signal.
The privacy-focused messaging service has already seen its user base grow by over 100% following recent WhatsApp policy changes. However, there are concerns that adding anonymous payments and other rumors could make the platform a home for illegal activity.
Singal did not immediately respond to Cointelegraph’s request for comment.