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The so-called “PayPal coin” is expected to be backed by the US dollar.
American multinational company PayPal Holdings Inc (NASDAQ: PYPL) is exploring options in the crypto space with a possible launch of its native stablecoin. According to some sources, Paypal’s crypto-based unit Curv, which it acquired in March last year, is presently aiming at developing and curating a stablecoin.
PayPal’s spokesperson, in an email, acknowledged PayPal’s new venture into developing a stablecoin, while clearly stating their vision of complying with the relevant regulators for the same.
The news of PayPal’s recent indulgence into the crypto space was primarily reported by Bloomberg when the proof of PayPal’s novel initiative was found on the company’s iPhone app. Steve Moser, an iOS developer, identified pictures showing ongoing work on a new stablecoin, the so-called “PayPal coin”. The program recognized by Moser predicts that the coin would be backed by the US dollar. According to the spokesperson, the images were collected during an internal hackathon with engineers that led to an investigation on various company’s blockchain, crypto, and digital currencies divisions.
Off lately, PayPal has been involved in several cryptocurrency measures, by revealing elements on the platform that allow the purchase and storage of digital tokens. In July last year, PayPal elevated the cryptocurrency limits for its users in the United States to $100,000 per week sans a yearly purchase cap. According to the California-based payment services company, its customers should have enough liberty to choose and conveniently buy cryptocurrency on the PayPal platform.
PayPal will also resume upgrading its in-app guides and educational materials on crypto tokens while answering some frequently asked questions about the same. PayPal has also been immensely involved in education-related initiatives to cater to larger audiences. For quite a while now, the company has been planning to start a platform to enable conversation on Decentralized Finance (DeFi) networks. It has also been able to furnish its users with an option to transfer crypto in and out of their wallets securely.
Stablecoins are essentially cryptocurrencies funded and estimated by the value of a current currency or commodity. Even with PayPal’s digital token currently under design, the name, logo, and key characteristics of the indigenous token will undergo some changes before the actual launch.
In an interview in November last year, Jose Fernandez da Ponte, PayPal’s senior vice President and General Manager of the Blockchain, crypto, and digital currencies talked about the companies plans on the crypto front in view of the current regulatory climate in the US and other countries. Da Ponte noted that the company has not yet observed a stablecoin that is specifically designed for payments.
In September last year, PayPal formally announced that all users of the payments app in the United Kingdom could now trade cryptocurrencies using their PayPal account. The company had announced its plans to migrate to the British market in August and instantly started its partial rollout of crypto trading services.