PayPal is exploring the possibility of launching its stablecoin, but here’s the catch
PayPal is a global e-commerce payment platform founded in 1998 by Peter Thiel, Luke Nosek, and Max Levchin. It was originally known as Confinity Inc. The US-based software department merged with Elon Musk’s online banking company “X.com” in 2000. Soon it was renamed ” PayPal âa year later.
At the end of 2020, it began to allow users to buy, hold and sell digital assets such as Bitcoin and Ethereum. He then extended that to his subsidiary, Venmo, and created a “payment with crypto” feature for paid merchants.
Well, fast forward now, PayPal is a dominant competitor in the crypto payments space. Indeed, a valuable addition to the crypto tree considering the 377 million PayPal users worldwide. The digital payment company has gone to great lengths to enter the crypto industry. Interestingly, now he’s diversifying his roots.
Hungry for more
The biggest company # 27 is currently exploring the possibility of launching its own stablecoin. In a recent interview with Bloomberg, PayPal confirmed that it is working aloneafter a developer (Steve Moser) discovered language about a “PayPal coin” in his iPhone app. Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal, told Bloomberg:
âWe are exploring a stablecoin; if and when we seek to move forward, we will of course work closely with the regulators concerned. “
Meanwhile, a PayPal spokesperson said the images and code inside the PayPal app came from a recent internal hackathon. It would not necessarily be representative of the final version. This means that the logo, name and ultimate functionality could change in its form of public product.
The aforementioned development comes as no real surprise. It wasn’t too long ago that the Senior Vice President reiterated the same interest in a podcast. He recently said the company “has yet to see a stable coin specifically designed for payments.” For using PayPal, a stablecoin would need to support large-scale payments and be secure, he said.
Meanwhile, Stablecoins has seen significant progress over the years. The total dollar value of stablecoins has grown from a low $ 20 billion a year ago to $ 160 billion. at the time of writing. This could indeed be a game-changer. PayPal, at the time of publication, is valued at around $ 316 billion. Oddly enough, this combination could wreak havoc on the stable coin market.
PayPal isn’t the first tech giant to consider launching its own coin. Meta Platforms Inc., formerly Facebook, helped develop a stablecoin called Diem. Even IBM Corp. (IBM) has partnered with Stellar, a blockchain that shares technology with Ripple, and Stronghold, a startup, to launch USD Anchor.
However, the growing traction also worries regulators about the risks stablecoins could pose to the financial system.