The “PayPal coin” will most likely be backed by the US dollar.
PayPal Holdings Inc (NASDAQ: PYPL), an American multinational corporation, is looking into crypto options, including the launch of a native stablecoin. According to some sources, Paypal’s crypto-based unit Curv, which it acquired in March of last year, is currently working on developing and curating a stablecoin.
PayPal’s spokesperson acknowledged PayPal’s new venture into developing a stablecoin in an email while emphasizing their commitment to complying with relevant regulators.
When proof of PayPal’s novel initiative was discovered on the company’s iPhone app, the news of PayPal’s recent foray into the crypto space was primarily reported by Bloomberg. An iOS developer named Steve Moser discovered images of ongoing work on a new stablecoin known as the “PayPal coin.” According to Moser’s recognized program, the coin will be backed by the US dollar. The images were gathered during an internal hackathon with engineers, according to the spokesperson, and led to an investigation into the company’s blockchain, crypto, and digital currency divisions.
PayPal has recently been involved in many cryptocurrency initiatives, revealing elements on the platform that allows for the purchase and storage of digital tokens. PayPal increased its cryptocurrency limits for US users to $100,000 per week without a yearly purchase cap in July of last year. According to the California-based payment services company, customers should have enough freedom to choose and buy cryptocurrency on the PayPal platform.
PayPal crypto token in-app guides and educational materials respond to frequently asked questions and invest heavily in educational initiatives to reach a wider audience. The company has been planning to launch a platform to enable conversation on Decentralized Finance (DeFi) networks for quite some time. It has also provided its users with the option of securely transferring cryptocurrency in and out of their wallets.
Stablecoins are cryptocurrencies funded and valued according to the value of a current currency or commodity. For example, even though PayPal’s digital token is still in the works, the name, logo, and key characteristics of the native token will change before it is released.
In a November 2017 interview, Jose Fernandez da Ponte, PayPal’s senior vice president and general manager of Blockchain, crypto, and digital currencies, discussed the company’s plans on the crypto front in light of the current regulatory climate in the United States and other countries. Da Ponte stated that the company has yet to come across a stablecoin designed specifically for payments.
In September of last year, PayPal announced that all PayPal users in the United Kingdom could now trade cryptocurrencies using their PayPal accounts. In August, the company announced its plans to move to the British market and began a phased rollout of crypto trading services.
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