PayPal is one of the companies that has shown a growing level of interest in the world of cryptocurrencies, and it seems ready to take it a step further. The company is “exploring” the possibility of launching your own stablecoin; that is, a stable cryptocurrency whose value is tied to the US dollar.
This was confirmed by José Fernández da Ponte, vice president and general manager of Blockchain, Crypto and Digital Currencies of PayPal, to Bloomberg. In any case, the initiative is under study and it is still unknown when it would be available. Also, the novelty it was discovered almost by accident, and that forced the aforementioned manager to provide explanations in relation to the plan.
As explained PC Mag, a developer named Steve Moser was the one who exposed PayPal’s plan to develop a stablecoin. Exploring the code of the iOS service app, he found a reference to ‘PayPal Coin’, which quickly sparked rumors that the company could be working on its own cryptocurrency. But beyond confirming their intentions, the company indicated that what was found was the product of a hackathon and that it should not be considered as finished.
“We are exploring a stablecoin. If we finally move forward with it, we will work closely with the relevant regulators, “explained Fernández da Ponte, without further details. It will be necessary to see what is the idea that PayPal has in mind and how it is similar (or how it differs) in relation to with the other stablecoins that already exist.
PayPal would expand its crypto potential with a stablecoin
Let PayPal study the development of its own stablecoin It is a logical move, especially for those who want to take their first steps in the world of cryptocurrencies. Keep in mind that currently the service allows you to buy and sell Bitcoin, Ethereum, Litecoin and Bitcoin Cash, and even pay for purchases with the crypto balance. However, these options have several limitations; on the one hand, They are only available in the United States, and transactions are limited to the PayPal app. At the time, the company promised to incorporate transfers to wallets from third parties, but without further details.
The development of a stablecoin it also requires getting around several important requirements. Today there are already alternatives developed and maintained by companies, such as USDC (Circle and Coinbase) and USDT (Tether Limited); And there is also the case of DAI, a project carried out by a decentralized autonomous organization called MakerDAO. If PayPal advances with its initiative, it will have to project not only in which networks its stable currency will work (TRC20, ERC20, etc.), but also how you will support it. In some cases there are already reserves of physical money and gold, while in others other cryptocurrencies are used as collateral.
Whatever the case, PayPal seems to have something more than interesting on its hands. It remains to be seen whether the idea of his own stablecoin —Call it PayPal Coin, or whatever — it attracts users. And if so, it will also be important to analyze if the company is ready to carry its cryptocurrency options. beyond the limits of the United States.