Signal Tests MobileCoin Payments in the UK

Signal Introduces Private Payments with MobileCoin

The encrypted chat application Signal is now incorporating payment functionality into its platform, a development that has been anticipated for some time. The company is proceeding cautiously with this expansion. Initially, a beta program exclusive to the United Kingdom will enable users to transact with the cryptocurrency MobileCoin with speed, convenience, and, crucially, privacy.

U.K. Beta Program Details

Users located in the U.K., or those able to access the service as if they were, will find a new Signal Payments feature upon updating the application. Utilizing this feature requires linking a MobileCoin wallet, which necessitates purchasing MobileCoin through the FTX cryptocurrency exchange – currently the sole platform listing it.

Once the wallet is linked, users can instantly transfer MOB to other users with linked wallets, mirroring the ease of sending a standard chat message. (The timeframe for expanding the beta program to other regions or supporting additional currencies remains unspecified.)

Privacy-Focused Payment System

Similar to how Signal maintains no access to user messages or calls, these payments are designed to be completely private. MobileCoin, developed in collaboration with Signal over the past two years, was engineered for both velocity and confidentiality.

It employs a zero-knowledge proof system and other innovative technologies to achieve a level of security comparable to Signal itself, while offering the usability of services like Venmo. Further details regarding their technical approach can be found in this research paper (PDF).

Recent Funding and Market Impact

Last month, MobileCoin secured over $11 million in funding, coinciding with speculation about the impending integration. This news significantly impacted the value of MOB, benefiting current holders but potentially creating challenges for those seeking to use it for everyday transactions.

The rapid price fluctuations could result in unintended financial consequences, such as overpaying for a simple purchase. However, holding the cryptocurrency is not mandatory.

Future Development and Automatic Currency Exchange

While frequent conversion to stable or fiat currencies may seem cumbersome, Signal co-founder Moxie Marlinspike has suggested the possibility of an automated exchange system. He rarely discloses details of features currently under development.

Potential Risks and the Importance of Privacy

There is a potential risk that involvement with cryptocurrency could negatively impact the positive reputation Signal has cultivated as a secure and impartial service. However, the Signal team believes this integration is unavoidable.

Given the increasing surveillance of popular payment services, mirroring the monitoring of email and social media, a shift towards end-to-end encrypted payments may be a proactive solution.