paypal explores own stablecoin crypto push

According to its most recent quarterly filing, transaction-related expenses cost PayPal $2.7 Billion in the third quarter of 2021.

PayPal could save significant amounts on transaction costs by using Solana, a high-transaction throughput blockchain. It is not currently possible to purchase or sell Solana ( SOL) via its platform. The blockchain on which it will deploy its stable coin remains unclear.

Arca’s president stated that it is likely that people will adopt digital assets through a third party who has gained their trust like PayPal.

There is not much information available about PayPal’s plans for stablecoins. Steve Moser, the iPhone developer who discovered PayPal Coin’s code, later revealed that PayPal contained references to stablecoins tied to the pound or euro in its application.

Paypal explores launch of own stablecoin in crypto push

PayPal Explores Launch of Own Stablecoin in Crypto Push

Mark Gurman and Jenny Surane Bloomberg

Fri, January 7, 2022, 3:40 PM·2 min read

(Bloomberg) — PayPal Holdings Inc. is exploring the launch of its own stablecoin as part of its cryptocurrency push, according to the company, which confirmed the development after evidence of the move was discovered inside its iPhone app.

“We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators,” Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal, said in a statement to Bloomberg News.

Some experts believe that the move by the firm was a positive one for the sector, while others think the stablecoin will have more of the same.

PayPal Coin could normalize crypto payments

A traditional financial company moving into cryptocurrency and launching its stablecoin is different from a crypto-native business launching a stablecoin. Traditional finance companies provide services to users who don’t need to deal with cryptocurrency wallets and the volatility in this area.

PayPal has over 350 million users. It allows users to buy, sell and hold Bitcoin (BTC), Ether(ETH), Bitcoin Cash/BCH (BCH), and Litecoins (LTC) in the U.S.

and UK. PayPal also allows users to make payments in crypto assets.

Paypal explores own stablecoin crypto pusha

Stablecoins are cryptocurrencies backed and priced by the value of an existing currency or commodity.

Evidence of the company’s exploration into building a stablecoin was first discovered in PayPal’s app by developer Steve Moser and shared with Bloomberg. Hidden code and images show work on what is dubbed a “PayPal Coin.” The code indicates such a coin would be backed by the U.S. dollar.

A PayPal spokeswoman said that the images and code inside of the PayPal app stemmed from a recent internal hackathon — an event in which engineers team up to quickly explore and build new products that may never see a public release — within the company’s blockchain, crypto and digital currencies division.

Paypal explores own stablecoin crypto pusher

Hidden code and images show work on what is dubbed a “PayPal Coin.” The code indicates such a coin would be backed by theUS dollar,”Bloomberghighlighted in its report.

Payment giant PayPal will soon have its own stablecoin — PayPal Coin (Photo by Eric PIERMONT / AFP)

The spokeswoman from PayPal also told Bloomberg that the images and code inside of the app stemmed from a recent internal hackathon — an event in which engineers team up to quickly explore and build new products that may never see a public release. The exercise is carried out within the company’s blockchain, crypto, anddigital currenciesdivision.

In other words, the end product when it comes to the branding, name and features could all change from its current public product form.

Paypal explores own stablecoin crypto pushes

This will be “quite interesting and a challenge.”

Taranto stated that PayPal’s ability to appease regulators will have an impact on other institutions. They will see it as a sign of global regulatory compliance.

Not only have stablecoin issuers been subject to scrutiny by regulators but also the pressure from the cryptocurrency community for transparency about their backing of stablecoins. PayPal will deal with increased scrutiny when it launches a stablecoin.

PayPal’s benefits from stablecoins

PayPal is suing its stablecoins, which is a positive for its bottom line.

Caleb Silver is the editor-in-chief of Investopedia’s financial information portal.

PayPal Holdings Inc. has confirmed that it is looking into the launch of its own stablecoin in its cryptocurrency push. The company announced after evidence was found within its iPhone app. Jose Fernandez da Ponte senior vice president said that the company is currently exploring stable coins.
If and when they decide to launch them, they will work closely with regulators.

It’s easier than ever to purchase cryptocurrency. All you need to do is open an app on your smartphone.

PayPal is one of the most popular online and mobile payment platforms that allows users to buy and sell cryptocurrencies starting at $1. If you are looking to add crypto to your portfolio, it is important to think about the platform you choose and whether or not you should invest in it.

Even the most well-known and trusted coins, Bitcoin and Ethereum, are still volatile.

This was after a developer discovered evidence of such a stable coin in the source code for the company’s iPhone application.

Jose Fernandez da Ponte, PayPal’s senior vice president for crypto and digital currencies, stated that the company would like to proceed with the stablecoin while working closely with regulators. This approach could help the fintech company avoid the wrath of US senators who condemned Meta’s Diem cryptocurrency Project.

The company clarified that the source code for its iPhone app was created in an internal hackathon. Cointelegraph reached out to PayPal for more information.
A spokesperson confirmed the previous reporting but didn’t offer any commentary.

It is difficult to predict the potential impact of a PayPal stabilitycoin on payments in general and the cryptocurrency industry.

Experts recommend that you buy and hold your crypto for the long term, just like other long-term investments.

PayPal and other apps, such as Venmo or Robinhood are making crypto easier to access, which is a big draw for beginner investors. However, increased accessibility can increase your risk.

Julian Morris is a certified financial planner at Concierge Wealth Management, Boston.

“If you have a PayPal account and are curious about cryptocurrency, then you can open PayPal and click crypto to get a few hundred dollars of cryptocurrency.” They make it so easy.

David Yermack is a New York University Stern School of Business finance professor who studies cryptocurrency.

He said that he doesn’t see how a PayPal stablecoin could be fundamentally different from PayPal, as long as it’s centrally controlled and its value is guaranteed by the company.

Bieliauskas said that it was “interesting to observe that PayPal wants to use crypto to make a positive PR move.” This suggests that the public views cryptocurrencies as something positive and not negative.

Overcoming regulatory obstacles

PayPal stated that it would work with regulators to develop its stablecoin, but it must still overcome regulatory hurdles due to the business nature of its operations.

Eli Taranto is the chief business development officer of EQIBank, a digital bank licensed to work with high-net-worth individuals and corporations. Taranto explained to Cointelegraph that PayPal’s geographic footprint will make it confront “worldwide regulatory problems” regarding crypto.

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