Paypal is developing its own stablecoin to facilitate the use and adoption of cryptocurrencies through its global electronic payments application.
Currently, the global electronic payments company Paypal Holdings Inc. is working on the development of its own stablecoin or stablecoin. This was confirmed to Bloomberg News PayPal's senior vice president of cryptocurrencies and digital currencies, José Fernández da Ponte, reporting that the company's new project already has important progress to date.
The new stablecoin developed by Paypal will help the company continue to drive the use and adoption of cryptocurrencies and digital assets globally. Paypal's objective, since it made its official entry into the crypto world in 2020, has been to integrate the cryptocurrencies, and digital assets into the mainstream, popularizing their use and adoption around the world in the same way it did with plastic cards from your digital wallet. Through its mobile application, Paypal facilitates payments and transactions with crypto assets to more than 200 million users, according to the company.
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Paypal Coin tests in iPhone app
According to the Bloomberg report, part of the advances of Paypal's new stable currency are already evident in the company's payments app on iPhone phones. Bloomberg analysts found that the payments company has made several moves with its future digital stablecoin within its crypto wallet. In addition, the stablecoin logo was available in the mobile application.
“We are exploring a stablecoin”, said the senior vice president of crypto and digital currencies at PayPal.
Paypal's stablecoin will be pegged to the value of the US dollar, Fernández da Ponte noted. In May 2021, The Block had reported on the possibility of the electronic payments company launching its own stablecoin. At that time, the crypto news agency revealed that Paypal could be working with Ava Labs, developed from the Avalanche network and with three other protocols blockchain for the development of its own digital currency. To date, the other three projects that the electronic payments company may be working with are still unknown.
Stablecoins are cryptocurrencies with stable value that are backed by an existing fiat currency, goods, commodities, or some cryptocurrency.
Collaboration with regulators
Unlike Facebook, Paypal ensures that it will work, from the beginning, with financial regulators to comply with all current regulations and laws regarding the development of its own stable currency. Fernández da Ponte stated that Paypal will work closely with relevant regulators to adequately advance the development of a new financial model based on crypto assets and its own stable value digital currency.
United States and the United Kingdom
The first country from which Paypal began offering cryptocurrency services was the United States. In October 2020, the company reported that its American users could buy, sell, and store cryptocurrencies from their digital wallet. The company later authorized payments with several of the most important and popular crypto assets on the market. In March last year, it enabled Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) payments. Then, it announced the possibility of transferring crypto assets to third-party wallets and last August, it enabled new cryptocurrency buying and selling options for its users and clients in the United Kingdom.
Investment in companies related to the crypto world and blockchain technology has also been present on Paypal's agenda. In June 2020, the company participated alongside Visa and other major companies in Blockchain Capital's $300 million financing round.
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