- A PayPal executive confirmed before launching their stablecoin that they will work closely with the relevant regulators.
- Stablecoin PayPal can take advantage of the payments giant over other traditional financial players in the market.
Diving into the cryptocurrency space for the first time in 2020, PayPal has taken aggressive measures over the past year. The latest thing to come is that PayPal is working on its native stablecoin called PayPal Coin.
These details first came to light when a developer discovered a language about «PayPal Coin» in the iPhone application. It was later confirmed by the company to Bloomberg News. Speaking to the media outlet, PayPal’s Senior Vice President for Cryptocurrency and Digital Currencies, José Fernández da Ponte, said:
We are exploring stablecoin; if and when we try to move forward, of course, we will work closely with the relevant regulators.
As we know, stablecoins are nothing more than fiat value digital currencies that make it easy to trade cryptocurrencies on exchanges. Ponte also said that the current stable plans are only exploratory and not yet very serious. As can be seen, PayPal is happy to follow all regulatory requirements before launching its own stablecoin.
Programmer Steve Moser, who first discovered «PayPal Coin» in the application’s source code for the iPhone, said the stablecoin will be pegged to the US dollar. PayPal is working to increase its presence in the cryptocurrency space. Last September, PayPal launched a crypto consumer application, savings and direct deposits.
After Libra Facebook, will PayPal be easy?
One of the biggest obstacles facing American businesses is dealing with legislators. We have seen the case of the Libra project on Facebook, now Diem, in which the social media giant was faced with multiple rejections to launch its native stablecoin. In addition, the current behavior of the legislators is not in favor of the stablecoin market, which has created strong competition against traditional players.
As early as November 2021, José Fernández da Ponte pointed out that PayPal has not «seen a stable coin out there that is deliberately made for payments.» Ponte believes that stablecoin should offer scale transactions without compromising network security. In addition, he added:
The regulation, regulatory frameworks and type of licenses required in this space should be clear.
So it seems that the finance company is already working on regulatory issues before launching its own stablecoin. However, this step could be a game changer for the payments giant, giving it an advantage over other traditional players.
PayPal first launched its cryptocurrency trading services in the United States in November 2021. Since then, it has been working with merchants around the world to eventually integrate cryptocurrency services.