Payment processing firm PayPal is researching the potential launch of its own stablecoin as part of the company’s cryptocurrency push, according to PayPal spokeperson who confirmed the development after evidence of the move was discovered within its iPhone app.
“We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators,”
Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal, said in a statement to Bloomberg News. Stablecoins are cryptocurrencies backed and priced by the value of an existing currency or commodity.
According to developer Steve Moser, the first evidence that PayPal is exploring the prospect of building a stablecoin was discovered in the PayPal app. Moser’s discovery concluded that PayPal is working on a stablecoin called PayPal Coin that will be backed by the dollar. PayPal has clarified, however, that the source codes for the iPhone application were developed in a recent hackathon rather than in-house.
Despite the fact that PayPal’s digital asset is in the process of developing, its name, logo and features could be subject to change due to numerous factors before the digital asset launches. PayPal has previously launched new features that have enabled users to obtain, store, and pay for digital coins. These are part of a service that supports the on-going development of the project.
Over the past few months, PayPal has been heavily involved in the cryptocurrency space, launching new features to purchase and hold the digital coins as well as the ability to pay for purchases with the currency.
PayPal hasn’t yet found a stablecoin that is designed specifically for payments. Stablecoins would be used by PayPal if they were scalable and secure. There would have to be clarity regarding regulation, regulatory frameworks, and the types of licenses needed.
Jose Fernandez da Ponte, Senior Vice President of Crypto and Digital Currencies – PayPal
It isn’t the first time a technology giant has considered issuing its own cryptocurrency. In recent months, media company Meta Platforms Inc., formerly Facebook, has worked on developing a stablecoin called Diem. In addition, Visa Inc. recently allowed a stablecoin backed by the U.S. dollar to settle a transaction with the network.
