The American fintech company PayPal is reportedly planning to launch its own cryptocurrency. The so-called 'PayPal currency' will be pegged to the dollar.
American fintech company Paypal He is reportedly planning to launch his own cryptocurrency in the future. Paypal originally opened cryptocurrency trading for its US users in 2020, allowing people to buy and sell Bitcoin, Litecoin, Ethereum, and Bitcoin Cash, earlier. expanding your crypto operations last year. However, the company's latest plan is even more ambitious as it looks to introduce its own digital token in the future.
Cryptocurrencies have seen growing acceptance in mainstream society over the past two years, both within and outside of the U.S. Late last year, the first Bitcoin ETF began trading on the New York Stock Exchange. (NYSE). A few weeks later, America's largest theater chain, AMC Theaters, announced plans to accept Bitcoin and other cryptocurrencies for online payments. However, one of the biggest victories for cryptocurrencies came at the beginning of the year when El Salvador declared Bitcoin legal tender.
In a statement to Bloomberg News This week, Paypal's senior vice president of cryptocurrencies and digital currencies, Josรฉ Fernรกndez da Ponte, confirmed that the company is "exploring a stable currency". He also promised that the company would work with regulators to make its plans a reality. Stablecoins, for those who don't know, are digital tokens whose values โโare pegged to fiat currencies, such as the dollar or the euro. This gives them a perceived "stability" in the face of wild fluctuations in price, hence the name.
The PayPal app refers to a 'PayPal currency'
According to Bloomberg, developer Steve Moser found the first hints about PayPal's internal cryptocurrency plans. He discovered a hidden reference to a 'PayPal currency' within the company's app. Subsequently, Moser contacted the publication to share his findings. The code and images found by Moser suggested that the PayPal token will be a stablecoin backed by the US dollar. It's worth noting that Paypal's planned stablecoin is still under development, which means the name and other plans could change by when it's ready for prime time.
While da Ponte did not explain to Bloomberg why PayPal plans to launch its own digital token despite the availability of so many existing cryptocurrencies, a previous statement from him on the Unchained podcast offers insight into the thought process of PayPal executives. According to him, none of the existing stablecoins is "specifically designed for payments", which requires PayPal to consider launching its own internal option. Also, according to him, for a cryptocurrency to be adopted by Paypal, it must support payments at scale and offer a high level of security. He also said that the company would like more regulatory clarity on cryptocurrencies in the future.
Fountain: Bloomberg News
