PayPal Inc. has recently announced that they are looking into cryptocurrency to launch stablecoin.
PayPal is an e-commerce company that makes it easy to send money to each other. The customers can link their debit cards or bank account with their PayPal account to keep record of their transactions.
A developer at PayPal, Steve Moser, told Bloomberg on Friday that he began discovering a reference to something called “PayPal Coin” on PayPal IOS app. However, a PayPal spokeswoman emphasized that the iPhone application’s source code was built during a recent hackathon, which means the font and logo might be changed on its public release if that happens.
Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal told Bloomberg “I don’t think that we have seen a stablecoin that works well for payments yet. We are exploring a stablecoin; if and when we seek to move forward, we will of course work closely with relevant regulators.”
Stablecoin is a type of cryptocurrency which derives its market value from a third-party source that are backed by existing currency or asset like US Dollar or gold. It offers stability in the sense that its value is backed by a specific asset that remains the same as compare to other cryptocurrencies like bitcoin whose value might be $47,000 the first week and $40,000 the other week.
PayPal, back in 2020, allowed its users to start using their app for buying, selling and keeping track of their crypto-related transactions. And later in 2021 they began accepting payments via cryptocurrency. PayPal uses different cryptocurrencies like Bitcoin, Bitcoin Cash, Litecoin, and Ethereum.
To read our blog on Visa has launched a cryptocurrency advising service for financial institutions and businesses, click here.
