Telegram Wallet Chooses Custodial Solution for Easier User Onboarding: Global Rollout Begins November 2023
Summary:
Telegram Wallet, a popular cryptocurrency trading bot on Telegram, has opted for a custodial solution for easier user onboarding, according to COO Halil Mirakhmed. The full implementation of the Wallet is set to begin in select African and Latin American countries in November 2023, eventually extending to various locations worldwide. Contrary to self-custodial wallets like MetaMask, users of the Telegram Wallet entrust their crypto assets to a third party, and not directly owned. This move aims to simplify the onboarding process and make cryptocurrency trading accessible immediately from users' Telegram settings.
Telegram Wallet, a popular Telegram bot offering users the ability to trade cryptocurrencies such as Bitcoin (BTC), has opted for custodianship rather than self-custody to accomplish simpler onboarding objectives, reports a high-ranking executive. In July 2023, the crypto-supportive Telegram Messenger made an official announcement regarding the incorporation of the custodial crypto wallet, Telegram Wallet. This permits users to reach the wallet directly through the messenger’s settings. While existing Wallet users can now directly spot the wallet bot within the messenger, those unfamiliar with the bot cannot yet see the crypto wallet in their messenger’s setting section.Telegram Wallet’s COO, Halil Mirakhmed, reveals that the thorough introduction of the Wallet is scheduled to start around November 2023, kicking off with various African and Latin American nations. Following the launch, Telegram users from selected countries can access the Wallet to begin trading and transferring cryptocurrencies including Bitcoin (BTC). Mirakhmed told Cointelegraph, “The launch will steadily extend to MENA, South East Asia, Central Asia, and Eastern Europe, before becomingavailable on a global scale, barring jurisdictions where the Wallet does not operate.”As Telegram Wallet anticipates the impending introduction of its crypto wallet to a multitude of Telegram users, it’s worthy to remember that the wallet bot is not self-custodial. Major self-custodial wallets such as MetaMask contrast with the Telegram Wallet bot, which currently runs a custodial wallet. Consequently, users hand their coins over to a third party and don’t own their assets directly. For instance, to extract Bitcoin from the Telegram Wallet, users must have adequate BTC to compensate for Telegram Wallet’s fees, which can occasionally exceed the original fees on the Bitcoin network.The COO of Telegram Wallet explained the platform’s choice of a custodial answer over a self-custodial one was due to several factors, including conveniently onboarding new users. Mirakhmed, in a discussion with Cointelegraph, noted, “Self-custody becomes exceedingly challenging if the aim is to induct as many people as possible into crypto,”. The COO also mentioned that before using a self-custodial wallet, it's necessary to decipher how to store the seed phrase and manage the wallet, which could be either a Chrome extension or an app, this can add complexity for a non-crypto native user. Unlike self-custodial wallets, Telegram Wallet aims to aid users in initiating their cryptocurrency usage immediately upon clicking on Wallet in their Telegram settings. While custodial wallets are more accessible, they are significantly less secure, while self-custodial or non-custodial wallets provide greater security but less convenience. The most significant risk when using a self-custodial solution is that the user alone is responsible for keeping the private key or the seed phrase safe to continue owning a crypto asset.
Published At
11/6/2023 1:47:00 PM
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