PayPal continues to expand its business since 2020 when it offered a cryptocurrency option to consumers and now, plans to launch its own stablecoin.
PayPal is working on a stablecoin and plans to launch its own currency that will expand its horizon in the cryptocurrency world. The hidden code and images depicted that this coin will be backed by the U.S. dollar.
The news broke out when one of the developers of the company Steve Moser discovered Paypal’s exploration. The new stablecoin was named “PayPal Coin” which was found inside its iPhone app.
Paypal to work closely with relevant regulators
Jose Fernandez, senior vice president of PayPal confirmed Moser’s findings and said that "We are exploring a stablecoin, if and when we seek to move forward, we will, work closely with relevant regulators".
The images and code inside the PayPal app were a product of an internal hackathon within the company’s blockchain, crypto and digital currencies division. This is an event in which engineers team up to explore and build new products that might never see a public release.
This means that the final product might have a different logo, name and features when it will be released to the public.
New move to normalise crypto payments
PayPal is a traditional fintech company. Its move to step into the crypto world makes it easier for people to trust the crypto market. Traditional financial institutions serve customers who are not yet been introduced to the cryptocurrency market.
PayPal’s move to launch a stablecoin can be a successful approach to introduce more people to this digital asset world. PayPal offers its users in U.S and UK the ability to buy, sell and hold Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) while enabling payments in these crypto assets. The fintech giant has over 350 million active users, and many of its customers use cryptocurrencies to make payments. The launch of stablecoin can be useful as it holds a secure position in the market.
Stablecoin eliminates the risk of volatility, as its value is backed by a specific asset. A cryptocurrency like Bitcoin fluctuates every week, however, a stablecoin that is worth one gram of gold will remain worth one gram of gold. Every stablecoin is not backed by gold. Several of them such as the USD Coin, and Tether are backed by the US dollar, so this makes it a stable currency that might be preferred by the people.