PayPal is very much keen to have its very own stablecoin and its subsidiary Curv is working on one. This is part and parcel of the financial technology company’s cryptocurrency push. PayPal confirmed that they are exploring the stablecoin and will closely work with regulators, that is, if and when the company wants to move forward with it.
Steve Moser, a developer for PayPal’s app, initially discovered the American multinational’s moves and disclosed it to Bloomberg. He said there was a hidden code and images showing work on the “PayPal Coin”. A spokeswoman for PayPal confirmed that the images and code inside of PayPal’s app surfaced in the company’s recent internal hackathon.
Jose Fernandez da Ponte, the senior vice-president of crypto and digital currencies at PayPal, said they have not yet seen a stablecoin that is purpose-built for payments. He said PayPal wants a stablecoin that will support payments at scale. It will also have security. In regards to regulation, the executive said there has to be clarity. He added regulatory frameworks and types of licences are needed in this space.
There are rumors that the PayPal Coin, like Tether, would be backed by the US dollar. Over the past few years, due to cryptocurrencies’ high volatility, investors and businesses are turning to stablecoins. It is regarded as the crypto sphere holy grail. The stablecoin is linked to a stable real-world asset, preferably a traditional currency, precious metals or real estate, etc, thus the term stablecoin.
It can stand up to extreme market volatility, be cost-effective and provide transparency to the consumers and investors. Experts believe stablecoins to be more sound than other currencies.