The company has overall been tight lipped about the matter but their code recently gave insights into how it is looking to launch a “Paypal Coin” stablecoin in the near future.
Despite regulatory issues, the stablecoin sector has seen a great deal of progress in recent years. Various companies have entered the market and are looking to capture a share of it. Older players like USDT, USDC, Paxos Dollar and others are riding a big wave of transformation and profiting from it. Now, it seems like another heavyweight is looking to enter the scene.
The indications of Paypal looking to enter the USD-pegged sector had nothing been but rumours in the recent past and therefore, no one paid much heed to it. However, a developer named Steve Moser discovered the workings of a stablecoin within the payment company’s iPhone App.
The move was eventually confirmed by Jose Fernandez, the SVP of Paypal Digital and Cryptocurrencies. He said:
“We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators.”
The new coin is currently being called Paypal Coin and is likely to be backed by the US Dollar. While some predicted that Paypal might look to create its own digital currency backed by a basket of different cryptocurrencies and assets, they did decide to go with a simple USD stablecoin. However, Paypal isn’t giving any indications on how it plans to proceed with Paypal Coin and claimed that the recent code found in the iPhone app was developed in a hackathon and thus not ready for deployment.
Paypal has been one of the success stories of digital currency adoption in the digital payments sector. The company initially allowed Bitcoin deposits and primitive trading back in 2020. After that, it proceeded to follow this line of progression. Reportedly, the company was fast tracking its stablecoin digital currency but had to take a step or two back due to the recent tussle with the government, particularly in the USA.
Many top state apparatus are fearful of the rise of the digital currency sector and in the short-term are looking to place curbs on stablecoins as a start. For Paypal, this meant that the release of its own Paypal Coin might need to be managed even more carefully. The company has successfully managed to incorporate crypto without incurring the wrath of any top governments including the US and it might want to keep it that way.
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