PayPal confirms its plans to launch a stablecoin

PayPal Holdings, the American fintech giant, has finally confirmed its intention to establish its own stablecoin, PayPal Coin.
PayPal Holdings, the American fintech giant, has finally confirmed its intention to establish its own stablecoin, PayPal Coin.

PayPal Holdings, the American fintech giant, has finally confirmed its intention to establish its own stablecoin, PayPal Coin. Developer Steve Moser first spotted the emergence of an in-house stablecoin in the source code of the platform’s iPhone app.

“We are exploring a stablecoin; if and when we seek to move forward, we will, of course, work closely with relevant regulators,” PayPal’s SVP of crypto and digital currencies Jose Fernandez da Ponte told Bloomberg News, confirming the evidence seen on the PayPal app.

Moser’s discovery revealed that the company is developing PayPal Coin, a digital currency backed by the US dollar. However, a company’s representative emphasized that the iPhone application’s source code was developed during a recent hackathon.

While PayPal’s digital asset is being developed, the name, logo, and functionality of the in-house token may change before it gets released. PayPal has previously announced additional capabilities that allow customers to buy, retain, and pay with digital tokens as part of the continuous development.

PayPal plans various crypto-related things

In a November 2021 interview, da Ponte also stated that PayPal has “not yet seen a stablecoin out there that is purpose-built for payments.” “There would have to be clarity on the regulation, the regulatory frameworks, and the type of licenses that are needed in this domain,” he says, adding that a stablecoin should facilitate payments at scale along with the insurance of the network’s security.

PayPal has taken proactive attempts to promote crypto-related operations beyond the United States, in addition to introducing its own stablecoin. The company previously launched crypto checkout service.

The fintech giant announced the launch of new Bitcoin trading services for the UK market in September 2021. Customers can trade key tokens such as Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).

As TheCoinRise reported, the co-founder of the company Peter Thiel previously said that he didn’t invest enough in Bitcoin.