In Brief:
- PayPal fell into the exploration of Stablecoin to launch ‘PayPal coin’ backed by USD.
- The news came out after PayPal’s iPhone App shows the Codes and images regarding Stablecoin.
- The team is closely working with regulators to develop compliant Stablecoin.
The World’s largest payment service company, Paypal revealed the plan to explore and launch its own stablecoin. Rumors were already spread in September that Paypal subsidiary Curve is involved in the development of stablecoin.
Stablecoin is a sort of digital asset, which holds its value with underlying fiat currency or commodity. Prominent Stablecoin, Tether is pegged its value with USD in 1:1 ratio.
The news came out after the reputed news website found shreds of evidence inside Paypal’s iPhone App. The pictures and strings of Codes clearly indicate the development of the ‘PayPal Coin’. Many crypto intellectuals deduced that the stablecoin would be backed by USD.
“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, told Bloomberg News.
PayPal Spokesperson has given details that images and codes came from an internal hackathon competition within the company’s blockchain, crypto, and digital currencies division. Hackathon is an event where teams of engineers team up to invent and explore new products.
Since the last year after the introduction of Cryptocurrencies withdrawal services on its App, PayPal seems to be shifting on crypto services. Recently, the company has initiated a crypto trading service in the U.K without any trading fees.
