PayPal is Working On its Own Cryptocurrency: PayPal Coin

If the market crash makes you nervous and you think the cryptocurrency industry is dead, you may want to change your mind. PayPal, the global electronic payment giant, is developing its own digital currency.

PayPal is exploring the development of a stablecoin, potentially linked to the US dollar, although there is no information on a roadmap for the project. Speaking to Bloomberg News, Jose Fernandez da Ponte, Senior Vice President of Crypto and Digital Currencies at PayPal, revealed that the endeavor was just an exploration, but very serious, though there are no concrete plans for practical implementation yet. He emphasized, however, that if the coin is approved, it will meet all necessary regulatory criteria:

“We are exploring a stablecoin; if and when we seek going forward, we will of course work closely with the relevant regulators.”

PayPal coin: Why stablecoin makes sense for PayPal

The development of a stablecoin provides certain advantages to PayPal. For example, it avoids the regulatory pressures that exist around more volatile and decentralized cryptocurrencies, and provides customers peace of mind that the amount they hold in their wallets will have the same value over time. It’s also better suited to PayPal’s business model, which is essentially a licensed money transmitter.

PayPal Coin, the (not so) creative code name for cryptocurrency, was discovered earlier this year by Steve Moser, a software developer who also revealed in November 2021 that PayPal’s application code contains references to possible compatibility with NEO cryptocurrency.

PayPal Coin Logo: Image The Tape Drive

NEO is a smart contract blockchain that was primarily developed in China and was known as Chinese Ethereum. It enjoyed great popularity during the boom period of 2017-2018, mainly due to its promotion as one of the first Ethereum killers. However, it failed to capture public attention in subsequent years. It is currently ranked 69th in the list of the top 100 cryptocurrencies with the largest market capitalization.

The next step in the bigger plan

The PayPal bet is the next step in the company’s interest in the cryptocurrency world. Peter Thiel already warned in 2021 that bitcoin could be a financial weapon for China and called for pressure for research and development in the US industry so that it would not be left behind in the race to dominate the cryptocurrency and digital asset market.

In 2020, PayPal announced a feature to buy Bitcoin, Ethereum, Litecoin and Bitcoin Cash and has since expanded its services, allowing the sale of cryptocurrencies, 3 and working to bring this service to other countries.

It is also important to note that PayPal was a founding member of the Libra Association, an initiative led by Facebook to create a cryptocurrency controlled by several large companies. The project ultimately failed, but PayPal appears willing to learn from Facebook’s mistakes in order to successfully launch its own currency.

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