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PayPal Intends to Launch Its Native Stablecoin
PayPal is working on launching its native stablecoin called "PayPal Coin". The digital payment giant, which has more than 377 million users worldwide, is apparently exploring the possibility of launching a new stablecoin of its own after foraying into the crypto world in 2020.
Bloomberg broke the news after developer Steve Moser discovered evidence of PayPal's exploration into establishing its own stablecoin in the company's iPhone app and shared it with the news agency. According to reports, the stablecoin would be backed by US Dollar.
In a Bloomberg report, PayPal's senior VP of crypto, Fernandez Da Ponte stated that an "appropriate stablecoin purpose-built for payments had yet to be identified". He added that "the appropriate stablecoin would need to support payments at scale and have security". And about the regulatory frameworks, "We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators" Ponte confirmed.
Stablecoins are a type of cryptocurrency that provides price stability and is backed by reserve assets like the US dollar or precious metals such as gold or silver.
PayPal has been particularly active in its cryptocurrency endeavours recently. They gained the crypto world's attention by boosting the number of bitcoins that its customers can buy and investing in crypto education, launching a service to convert users' holdings into flat currencies and striving to allow users to withdraw their crypto to third-party wallets safely.