PayPal confirms that it is ‘exploring’ a stablecoin

Paypal has plans to work on a stablecoin as the company dives deeper into cryptocurrency transactions. Jose Fernandez da Ponte, the senior vice president of Paypal’s crypto and digital currencies division, confirmed this speculation last Friday. According to the Paypal representative’s statement, they will be exploring a stable coin and are seeking to move this plan forward. He also attested that the company is thinking of reaching out to the relevant authorities and regulators regarding this new stable coin.

How did the speculation of Paypal’s stablecoin emerge?

Paypal’s official statement came out after a developer named Steve Moser discovered a crypto coin code hidden in the said company’s application. He immediately reported his findings to Bloomberg, a software and media outlet company in New York. The developer also shared that the stablecoin already has a logo in place and will be called “Paypal Coin”. He also noted that this cryptocurrency will be backed by the US Dollar which makes this more stable compared to the high volatility of other digital tokens. 

However, the Paypal representative explained that what Moser found was some leftover codes from the hackathon that the company held a while back within their division. But the idea of a Paypal crypto coin has already been considered. With this adequate confirmation from the representative, many users of the platform as well as crypto traders are waiting for more developments for this much-anticipated plan.

What is Paypal?

Paypal is a megacorporation in the US that provides an online payments system from across the globe. They provide a fast and effective money transfer alternative to traditional paper money or check transactions. Their platform is also used as a payment option for many online stores on the Internet. As a company that deals with online currency transactions, it is about time that they decide to create their crypto coin.

Has Paypal been involved with crypto coins before?

Last October 2020, Paypal made a huge step by including crypto coins as an option for payment. Furthermore, they also added a special feature to their app called “Checkout with Crypto”. This enables users to purchase items using their crypto coins. In the meantime, Paypal has allowed cryptocurrencies such as Bitcoin, Litecoin, and Ethereum to be used on their platform for payments. 

What is a stablecoin?

A stablecoin as the name suggests can maintain its price for long periods. That is because it is backed by reserve assets and is pegged at them. This is why it is almost volatility-free and is considered a safe crypto investment. Examples of reserve assets that crypto coins can be pegged at are fiat currencies and gold. In the case of the Paypal Coin, it will be backed by the US dollar.

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.