PayPal, an American multinational financial technology company, is reportedly exploring the idea of creating it’s own stablecoin (a form of cryptocurrency pegged to the value of fiat or a commodity standard) backed by the US dollar, in a bid to expand its users’ options in the cryptocurrency space.
Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at Paypal has stated on Friday, “We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators.”
PayPal Planning To Come Out With A USD-Backed Crypto
This news was revealed when the developer Steve Moser first took notice of it in the hidden code of PayPal’s iPhone app, where he allegedly found code and images outlining PayPal’s plan to roll its very own crypto coin out in the future. The discovery was made in the course of a hackathon of the service’s iOS app, and was shortly followed by an official statement made by the company’s spokesmen to Bloomberg.
As per Moser’s findings, the PayPal Coin has its own logo and possibly even its own symbol already.
Ponte also clarified that the code and images were from an internal hackathon, reminding that the idea is still in its early stages; this implies that the final logo, name, and features of the stablecoin could turn out quite different from what’s currently shown in the code.
He also pointed out just recently, on the Unchained podcast of Paypal, that he has “not yet seen a stablecoin out there that is purpose-built for payments.” Bearing in mind the importance of supporting payments at scale and having security for the payments giant’s use, he emphasized, “There would have to be clarity on the regulation, the regulatory frameworks, and the type of licenses that are needed in this space.”
For current and potential crypto holders, PayPal presently facilitates buying, selling and holding in Bitcoin, Bitcoin Cash, Ethereum and Litecoin cryptocurrencies, as stated by NoteBookCheck.