The plans come with little surprise after a Steve Moser, a developer dug around in the PayPal app, and discovered evidence that the company was tinkering with a cryptocurrency called ‘PayPal Coin’ backed by the US dollar.
Moser also found references to another cryptocoin, Neo, in PayPal’s iOS app, poiniting to more evidence of a possible upcoming stablecoin.
According to Jose Fernandez da Ponte, Senior Vice President of Crypto and Digital Currencies at PayPal:
“We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators.”
– Senior VP, Crypto & Digital Currencies, PayPal
Speaking on the Unchained podcast recently, Fernandez also revealed that the company has ‘not yet seen a stablecoin out there that is purpose-built for payments.’
PayPal currently supports buying, selling and holding Bitcoin, Bitcoin Cash, Ethereum and Litecoin cryptocurrencies.
A stable coin is a cryptocurrency that is pegged to a more stable currency – usually the U.S dollar.
Examples of stablecoins backed by the dollar include:
Stablecoins are a staple of crypto activity as they facilitate trading, lending or borrowing of cryptocurrencies.
The stablecoin is redeemable on a 1:1 basis for US dollars and backed by fully reserved assets.
In October 2020, PayPal made waves with its announcement that it was adding crypto to its payments app, allowing users of its main service as well as Venmo to purchase and hold crypto.
PayPal customers can buy and sell cryptocurrency on the platform for investment, trading or to use it to transact on another site and they can also use it to pay on websites that accept PayPal payments.
According to the tech payments giant, there will however need to be clarity on the regulations, the regulatory frameworks, and the type of linceses needed in the space to support a stablecoin paymetns at scale with proper security before this happens.
Currently, you can use crypto at over 30 million merchants with PayPal acting as the gateway.