PayPal Is Creating It’s Own Stablecoin

January 9, 2022 5:24 pm Comments

In recent announcements, PayPal mentioned the company was exploring the launch of it’s own stablecoin nicknamed “PayPal Coin”.

The idea of the coin first came about during an internal hackathon hosted by the company in which engineers propose ideas for new products that may never get released.

According to a Bloomberg article, Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal, shared further details on the company’s future plans:

We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators.

There would have to be clarity on the regulation, the regulatory frameworks, and the type of licenses that are needed in this space.

PayPal remarked that it had not seen any other stablecoins out there that were built specifically for payments. The company had strict requirements for a stablecoin which includes satisfying high security standards, the ability to be used at a large scale, and being backed by actual assets.

PayPal isn’t the only company thinking of launching its own cryptocurrency these days.

Meta (formerly Facebook) has been working on a stablecoin called Diem and financial giant Visa has been experimenting with stablecoins to help settle transactions.

With a plethora of different stablecoins being launched by tech giants in recent years, mainstream adoption becomes more and more likely. Top stablecoins have consistently seen growth throughout the past few years with record growth in the past year alone.

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