PayPal has allegedly acknowledged that it is developing a stable coin. Steve Moser, a developer, spotted references to “PayPal Coin” within PayPal’s iOS software. After Bloomberg enquired, PayPal senior vice president of crypto and digital currency, Jose Fernandez da Ponte corroborated Moser’s results.
“We are investigating a stable coin,” Fernandez da Ponte told Bloomberg, adding that “if and when we want to proceed, we would, of course, work closely with appropriate regulators.” However, a business spokeswoman stated that the code Moser discovered was the result of a hackathon, thus it is not considered final.
Over the previous few years, PayPal has gradually expanded its presence in the cryptocurrency sector. It began facilitating the purchase of specific cryptocurrencies in late 2020, for example, and in March 2021 it launched the “Checkout with Crypto” option, allowing customers to purchase items using their digital tokens.
The company’s current cryptocurrency support is restricted to Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. According to Moser, PayPal’s app has disclosed that it is trying to support the Neo cryptocurrency as well as studying the idea of developing its stable coin.
A stable coin is distinguished from other digital currencies by the fact that its value is supported by a specific item. A cryptocurrency like Bitcoin may be worth $47,000 one week and $42,000 the next; a stable coin worth one gram of gold one week will still be worth one gram of gold the following week.
Most stable coins are not backed by gold. Several of them, such as USD Coin and Tether, are backed by the US dollar. According to Bloomberg, PayPal Coin would also be backed by the US dollar, making it simpler for the typical PayPal user to embrace digital money for everyday use.