According to reports, Paypal is developing a stablecoin supported by the U.S. dollars in order to increase its cryptocurrency offerings. “We will, of course, work closely with relevant regulators,” the company stressed.
The launch of its USD-backed stablecoin by Paypal is being explored
Paypal Holdings Inc. is reportedly exploring the launch of its own stablecoin backed by the U.S. dollar as part of the company’s cryptocurrency push, Bloomberg reported Friday.
Jose Fernandez da Ponte (senior vice president for crypto and digital currencies at Paypal), confirmed the publication.
While we are currently exploring stablecoins, we intend to work closely and in collaboration with the relevant regulators should we move forward.
The evidence of Paypal’s stablecoin was first spotted by developer Steve Moser, who shared his findings with the news outlet. He noticed hidden code and images in Paypal’s app showing work on “Paypal coin” that is backed by the U.S. dollar.
The images and the code in the Paypal app were taken from an internal hackathon, according to a Paypal spokesperson. This means the final logo, name, and features of the stablecoin could be different from what’s currently shown in the code.
Fernandez da Ponte recently said on the Unchained podcast that Paypal has “not yet seen a stablecoin out there that is purpose-built for payments,” the publication conveyed.
Noting that a stablecoin would need to support payments at scale and have security for the payments giant’s use, he opined:
Clearness would be required about the regulations and regulatory frameworks as well as the types of licenses needed to operate in this market.
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