Amidst the thriving landscape of digital payments, the addition of a novel cryptocurrency solution by Telegram’s Wallet bot is marking a new revolution.
In this rapidly transforming crypto arena, Telegram’s Wallet is weaving its magic by offering a smooth way to transact cryptocurrencies, giving a substantial boost to the global crypto economy.
Breaking the boundaries in cryptocurrency payments
Known for its commitment towards crypto, the popular messenger app Telegram has introduced Wallet Pay, a payment service that allows users to purchase and trade in cryptocurrencies.
This innovative offering, which runs on The Open Network (TON) blockchain, enables seamless transactions between individual users and retail businesses, all within the comfort of Telegram’s familiar interface.
The Wallet Pay service is already accessible in numerous jurisdictions, extending the ease of crypto payments to the broader global user base.
However, a few countries including the United States and those on the Financial Action Task Force’s blacklist, such as Iran, North Korea, and Myanmar, are currently exempted from this service.
Maintaining regulatory compliance: A major challenge
While Wallet Pay is a significant milestone in the crypto payment landscape, the path is not entirely clear of roadblocks.
Many countries where the Wallet bot operates have imposed regulations against using cryptocurrencies for payments, passing on the responsibility of compliance to local businesses.
These businesses are expected to assess their jurisdiction’s crypto regulations before opting for Wallet Pay. The list of countries that prohibit residents from making crypto payments include Russia, Indonesia, Vietnam, Iran, and Egypt.
Interestingly, Russia, which officially banned domestic crypto payments in 2020, is the second-largest market for Telegram downloads, trailing only India. Indonesia, Egypt, and Vietnam also feature among the top 10 countries for Telegram app downloads.
Preparing for future crypto exchanges
With the Wallet Pay service ready to roll, anticipation builds around which merchants will be the first to implement this payment feature.
Despite having received several hundred inquiries, the company has not begun the Know Your Business (KYB) procedure and hence remains uncertain about the initial adopters.
Operational transparency is a priority for the firm, which functions independently from Telegram. The Wallet bot and application leverage the Telegram Web Apps open protocol, which allows developers to create their own apps and services on Telegram.
Users can access the payment service via a dedicated Telegram bot or the official Wallet Pay website. As of now, Wallet Pay supports Bitcoin, Tether, and Toncoin, the three cryptocurrencies currently available on its wallet service.
Unlike other noncustodial wallets like MetaMask, Telegram’s Wallet bot is a custodial solution and has its fee structure. Fees for crypto payments are expected to range from 1% to 3% during the beta period.
As we edge further into the crypto future, Telegram’s Wallet bot is making a definitive statement with its Wallet Pay service, aiming to reshape the contours of the crypto payment industry and setting a benchmark for others to follow.
