A Stablecoin backed by dollars, PayPal Coin, could be the company’s next offering to the world, a new Bitcoin alternative.
Those who think the crypto industry is dead due to the market crash might want to reconsider. PayPal, the global e-payments giant, is working on its own cryptocurrency. Payments giant PayPal is examining the possibility of developing a stable coin, possibly pegged to the dollar, although no timeline for the project has been announced.
Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal, revealed that the endeavour was exploratory yet very serious, even though there were no clear plans for practical implementation.
Despite this, he assured everyone that the currency would meet all regulatory requirements if approved: “Our goal is to explore a Stablecoin; if and when we decide to proceed, we will work closely with relevant regulators.”
Stablecoin development offers PayPal certain advantages. Avoiding the regulatory pressures around the more volatile and decentralized cryptocurrencies gives customers peace of mind that the amount they keep in their wallets will remain the same. It is also more suitable for PayPal’s business model, essentially a licensed money transmitter.
Earlier this year, PayPal Coin, the (not so) creative codename of the cryptocurrency, was discovered by Steve Moser, a software developer. He also revealed in November 2021 that the PayPal App code mentioned potential compatibility with the NEO cryptocurrency.
NEO is a smart contract blockchain built primarily in China, and it used to be known as the Chinese Ethereum. It gained a lot of popularity during the boom of 2017-2018, mainly because it was promoted as the first Ethereum competitor. It failed to attract the public’s attention in subsequent years, and it is currently ranked 69th out of 100 cryptocurrencies with the highest market capitalization.
Paypal’s Step Toward A Better Plan:
PayPal’s bet is part of PayPal’s growing interest in cryptocurrencies. Peter Thiel already predicted Bitcoin could become China’s financial weapon in 2021 and called for American research and development.
The goal is to not be left behind in the race to dominate the cryptocurrency and digital asset markets. PayPal introduced the option to buy Bitcoin, Ethereum, Litecoin, and Bitcoin Cash in 2020. It has since expanded its services, allowing the sale of cryptocurrencies, three and working on expanding it to other countries.
PayPal was also a founding member of the Libra Association, which Facebook led to developing a cryptocurrency controlled by several large corporations. Despite the project’s failure, PayPal appears willing to learn from Facebook’s mistakes to launch its own currency successfully.
