Since opening crypto trading to all customers in 2020, PayPal has been developing its cryptocurrency operations. It allowed US users to pay with cryptocurrencies and raised the amount of cryptocurrency it could buy last year. The payment firm has more plans for its crypto enthusiasts.
PayPal Holdings Inc. is considering launching its own stablecoin as part of its crypto drive. The virtual payment giant confirmed the news after proof of the step was found in its iPhone app. Steve Moser, a developer, discovered hidden code and graphics for a “PayPal Coin” in the iPhone app and revealed it to Bloomberg.
According to reports, the PayPal Coin will be supported by the US dollar. Furthermore, It could also have the PayPal emblem with two horizontal slashes across it; however, that could alter once the coin is released, assuming it does. According to a representative for Paypal’s digital currencies division, Jose Fernandez da Ponte, the information Moser discovered in the software were remnants from an internal hackathon.
Jose said in a statement to Bloomberg, “We are exploring a stablecoin; if and when we seek to move forward, we will, of course, work closely with relevant regulators,”
Paypal’s Crypto Ambition
In recent months, PayPal has stepped up its cryptocurrency efforts, introducing new facilities for buying and holding digital tokens, as well as the option to pay for transactions with them.
Jose recently stated that the company has yet to see a stablecoin designed just for payments. According to Jose, a stablecoin would need to allow payments at scale and be secure for PayPal to utilize.
PayPal isn’t the first international corporation to consider developing its own cryptocurrency. Other giants such as Facebook, now Meta, and Visa have made similar moves. Diem is a stablecoin developed by Meta Platforms Inc. Meanwhile, Visa Inc. has permitted a stablecoin secured by the US dollar to complete a payment with the network.
Stablecoins are fiat-backed cryptocurrencies that are often more durable than their unregulated counterparts. Meta also has significant crypto intentions and was planning to introduce a digital wallet that would support its own stablecoin, Diem. However, due to regulatory opposition, it decided to offer the cryptocurrency wallet Novi instead, which uses the Pax Dollar stablecoin.
Paypal to be a key player
PayPal was one of the original Web 1.0 companies. PayPal was controlled for many years by eBay, another veteran of e-commerce until it was separated in 2015. PayPal had a market capitalization of $1.5 billion about 20 years ago and now has a market capitalization of nearly $240 billion, demonstrating the global expansion in online purchases during that time.
PayPal CEO Dan Shulman said the business aspires to be the world’s next financial mega app, combining digital payments, eCommerce, trading, savings, management, and crypto operations into a single platform. Furthermore, PayPal has been one of the greatest beneficiaries during the COVID-19 pandemic, as more and more people are opting for digital payments rather than using credit cards or cash. The company expects its userbase to double by 2025.