The Significance of a Samsung Cryptocurrency Coin: The Race for the Face of Digital Payments
Samsung is one of the largest companies that is considering issuing a virtual currency to the market.
There are other firms such as Facebook and JP Morgan Chase that are also working on their own blockchain systems and digital currencies. In this way, technological and influential companies are working to release their own cryptos.
Samsung Works On Its Own Cryptocurrency
Although this has not been confirmed by the company, the firm could be working on its own Samsung Coin. The digital currency could be used on the company’s app store and it could also be added to different virtual currency exchanges in the market. Moreover, Samsung Pay could include functionalities with this cryptocurrency as well.
According to a source that has knowledge in the matter, explained that the company and its blockchain division were working on an Ethereum-based virtual currency. As per the source of the project, the intention is to create a Samsung Coin.
About this issue, the business development and fintech chief at Samsung SDS Europe, Moritz von Widekind, mentioned that the firm has not yet taken any specific decision regarding this digital asset. The executive went on saying that the token could be launched on the NextLedger enterprise blockchain platform.
Samsung has been investing in the crypto and blockchain market over the last few months. The firm has participated in a $4 million investment round for ZenGo, a crypto wallet app. This application is also receiving interest from other companies. Samsung has also released the Galaxy S10 smartphone a back in March, which includes an integrated cryptocurrency and blockchain wallet.
Facebook is another firm that could be releasing a virtual currency to the market. The largest social media platform around the world aimed at launching an in-app virtual currency. There has been no official announcement about it yet. There are other analysts that believe that the Facebook Coin could be a digital currency to be used on the WhatsApp application in order for users in India and other markets to perform transactions between users.
The FB Coin could be a stablecoin backed by funds that the firm has rather than creating a volatile digital asset. This could help many individuals that perform cross-border payments or people that need to send or receive remittances.
According to the World Payment Report (WPR), large tech firms such as Google, Facebook and Tencent account for more than 70 percent of the global money transfer market.
The report reads as follows:
“These companies are leveraging their large-platform user bae to make an impact in the payments space, focusing on providing seamless user experience, value-added features, and making use of network effects. Incumbents should learn from the BigTechs and invest in technology platforms in order to compete with them.”
The company has also been hiring new personnel related to the blockchain industry. Their blockchain team is also growing and the intention is to analyze how distributed ledger technology could be applied to the company to improve its services in the market.
Nathaniel Popper, a journalist at The New York Times, informed that the firm was searching for $1 billion in venture capital funding. He said that he talked with a person close to Facebook and that they are thinking about using the money as collateral for the digital currency they want to create. There could be several fiat currencies used to back the new cryptocurrency.
Finally, JP Morgan Chase has also decided to launch its own digital currency to the market. The investment bank has already been working with blockchain technology and it already offers services with its permission blockchain network called Quorum, which is based on the Ethereum blockchain.
This currency is different than others because it will be used by the bank as a settlement tool to increase the efficiency of the overall process. JP Morgan Chase’s clients will start using this virtual currency in the coming months. Basically, the digital asset is going to be competing against Ripple and the XRP digital currency.
Thus, there are many different companies working with blockchain and virtual currencies. The benefits of issuing a digital asset could be large for each of these firms. Central Banks are also analyzing the possibility to launch central bank digital currencies (CBDC), nonetheless, the projects are currently on early stages and could never see the light.
Cryptocurrency supporters criticize these initiatives due to the fact that most of these coins are going to be centralized and controlled by a few nodes that would have all the information from users in these networks. People are going to be providing their private information, which is not good for privacy. Currently, governments and several companies are already gathering a lot of information from individuals without them knowing.
It will be interesting to see which is going to be the effect that these virtual currencies are going to have in the market and in the way these firms work.