Payment services giant PayPal could soon launch its StableCoins called ‘PayPal Coin’.
As the cryptocurrency world continues to balloon, the financial technology company PayPal has started ideating ways to enter the crypto market. The company is looking to launch its StableCoins.
StableCoins – A Popular Choice
Cryptocurrencies are volatile digital assets. This means that their value can fluctuate frequently. StableCoins are a way of introducing ‘stability’ in the crypto world. Moreover, the price of StableCoins is fixed or ‘pegged’ to a reserve asset like the U.S. dollar or gold. This means that StableCoins will not change in case of any fluctuations in the crypto market.
StableCoins combine the best of both worlds by merging the world of cryptocurrency and fiat money. It combines the flexibility and anonymity of cryptocurrency and provides its buyers with the assurance of its stable value, as seen in the traditional fiat currency system.
PayPal Team Confirms News of StableCoins
The senior vice-president of crypto and digital currencies at PayPal confirmed the development of StableCoins to Bloomberg. Moreover, Jose Fernandez de Ponte said they were looking to create their StableCoin and work closely with regulators.
Discovery of PayPal’s Entry into the Crypto World
Developer Steve Moser was the first to discover the evidence of PayPal’s entry into the crypto world. Moser found proof on the company’s iPhone app and then shared this news with Bloomberg. Hidden codes and images in the app showed that the company was creating a ‘PayPal Coin as reported by the source. According to the rumours, US Dollar will be backing PayPal’s coin.
However, a spokesperson for PayPal said that the images and codes inside the PayPal app were from an internet hackathon. Which was conducted within the company’s cryptocurrency division. Hackathons are events where engineers try to create new products that aren’t made public.
Payment Services Like PayLooking to Enter Crypto Business
PayPal has shown great enthusiasm for its cryptocurrency ventures. It has invested in educating its users about cryptocurrency. It has increased the amount of cryptocurrency the customers can buy on the PayPal platform to $100,000 per week without any annual purchase limit.
Last year, the research firm MoffetNathanson LLC released a note to its clients stating that big payment services like PayPal, Visa, Mastercard do not see the introduction of cryptocurrency as a threat. Instead, they are looking at ways to invest in the crypto ecosystem.
Visa is partnering with crypto wallets, Mastercard is looking to enter the NFT marketplace, and PayPal, with its exploration of StableCoins, is already engaging in the crypto business. It would be interesting to see the volume growth of these payment services in the coming years.