Assuming this is true since both partners are regarding it as a new "Private Conversations" feature instead of giving complete blanket coverage. It's based on the Signal Protocol, which powers Skype's new end-to-end encrypted Private Conversations feature.
Signal is an open source project now found in WhatsApp, Facebook Messenger and Google Allo.
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Private Conversations will encrypt Skype audio calls and text messages.
During the testing, users who are using Skype Insiders will only be able to start private conversations with other Skype Insiders using the latest preview version.
Once the contact accepts the invite, a Skype Private Conversation will become active on the device used to invite the particular contact. Restarting a Private Conversation with the same contact will recover the previous messages. End-to-end encryption means not just the communication channel is secure but the messages stored on servers can only be read by those involved in the communications. In order to use the feature, a user has to select the "New Private Conversation" option from the compose menu or from the recipient's profile. You can only participate in a private conversation from a single device at a time. Skype's implementation, Microsoft says, takes advantage of the industry standard Signal Protocol by Open Whisper Systems. WhatsApp was one of the first major messaging apps to enable it two years ago, but a group of German researchers recently uncovered several potentially serious flaws in WhatsApp group messaging that could be exploited to add new members to the encrypted chat without authentication. But this isn't the same as end-to-end encryption.
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Deleting a Skype Private Conversation chat window works the same as any other regular chat; right click on desktop/ tap and hold on mobile will display the Delete Chat option. Encrypted conversations are locked to the device they are started on.
Alas, the UWP version of Skype, distributed on the Microsoft Store, is left out for now.
Once upon a time, Skype's distributed peer-to-peer communications was considered pretty good for privacy.
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