PayPal Considering Launching a Stablecoin: Advancing Crypto Strategy
PayPal said it will launch its own stablecoin as part of its strategy to advance cryptocurrencies.
The news came to light because a developer found relevant evidence from PayPal’s iPhone app. PayPal later confirmed the news.
Jose Fernandez da Ponte, the company’s senior vice president of crypto and digital currencies, said in a statement: “We are exploring stablecoins and will certainly be relevant if we decide to move forward with this plan one day. Regulators work closely together.”
A stablecoin is a cryptocurrency that is based and priced based on the value of an existing currency or commodity.
Evidence of the scheme was first spotted by developer Steve Moser in PayPal’s iPhone app, where hidden code and images showed the company was developing a cryptocurrency called “PayPal Coin” currency. And the code inside suggests that the cryptocurrency will be based on the U.S. dollar.
A PayPal spokesperson said the images and code in the PayPal app originated from a recent “hackathon” held at the company’s blockchain, cryptocurrency and digital currency division. A hackathon is an event in which engineers work in teams to rapidly explore and develop new products that may never be released publicly.
That said, even if PayPal’s stablecoin is eventually released publicly, its trademark, name, and functionality could change.
PayPal has been involved in a major cryptocurrency project in recent months, rolling out new features for buying and holding digital currencies, and allowing users to pay with those cryptocurrencies.
Fernandez da Ponte recently stated on the Unchained podcast that the company “has not seen a stablecoin designed for payments.” If PayPal is to use a stablecoin, it must be able to support large-scale payments and ensure security .
“Regulations, regulatory frameworks and types of licenses must be clarified,” he said.
PayPal is not the first tech giant to consider launching its own cryptocurrency. Meta, formerly Facebook, has been helping to develop a stablecoin called Diem, and Visa has also allowed a dollar-based stablecoin to settle transactions on its network in recent months.