PayPal seeks to launch its own stablecoin

(Image Courtesy: Reuters)

PayPal has been inching its way into the cryptocurrency market. In 2020, it allowed people to buy and sell crypto, and make transactions but it is currently limited to the US.

According to a statement given to Bloomberg by PayPal's senior vice president of crypto and digital currencies Jose Fernandez da Ponte, the company is now exploring options to create its own stablecoin.

Stablecoins are an offshoot of digital currency that is tied to the value of a stable reserve asset like the dollar, rupee or the value of a tangible commodity, that can be redeemed.

Also Read: Explained | What are stablecoin, how are they different from other cryptocurrencies?

They try to offer the best of both worlds, the fast processing and privacy of cryptocurrency transactions, and the centralised, more stable values of fiat currencies like the aforementioned US dollar or the Indian rupee.

“I don’t think that we have seen a stablecoin that works well for payments yet,” Jose Fernandez da Ponte told Bloomberg.

“We are exploring a stablecoin; if and when we seek to move forward, we will of course work closely with relevant regulators,” he added.

Also Read: Crypto Conversations | Why stablecoins have seen phenomenal growth

The discussion kicked into gear when iOS developer Steve Moser found code within the PayPal app for iOS, that hinted at a future "PayPal Coin", to be backed by the US dollar.

PayPal is working on a stable coin called ‘PayPal Coin’. Found the logo in their iOS app. #USDC #UST #tether #USDT #PayPalCoin https://t.co/1SGuRKZ9NS pic.twitter.com/j6D0JaHW8Q

— Steve Moser (@SteveMoser) January 7, 2022

Initially, the company denied the claims and said that the images were from an idea generation session for a hackathon, but eventually admitted to Bloomberg, that it was looking into creating its own coin.