As reported on BNN Bloomberg, PayPal is approaching the launch of its stablecoin. This, as the company would develop the technology to offer more payment options for its platform.
Launch of PayPal Stablecoin
According to Bloomberg, this is all revealed after developer Steve Moser discovered something about PayPal Currency in the iOS app for PayPal.
After this discovery, Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal, said: “We are exploring a stablecoin; if and when we seek to move forward, we will of course work closely with relevant regulators,” in a statement to Bloomberg.
The report goes on to say that a PayPal spokeswoman said the images and code discovered by Moser were part of a recent internal hackathon in its blockchain, crypto and digital currencies division. Whether PayPal goes ahead with this stablecoin or not, it seems the company is exploring the possibility.
This is an important step as cryptocurrency is increasingly accepted by more businesses and used by even more consumers. If PayPal chooses a stablecoin, it will ensure that the value will not fluctuate like other cryptocurrencies.
What is a Stablecoin
As the name suggests, a stablecoin seeks to establish the stability of a cryptocurrency by pegging to a reserve asset such as the US dollar or even gold. This means that the coin will always have the same value as the US dollar or the currency used when minting.
Comparatively, cryptocurrencies such as Bitcoin, Ethereum or Cardano are not indexed. And because of that, there is high volatility in these coins. And for businesses and consumers who want to use crypto as a merchant tool, the stability is high quality.
Currently, there are several stablecoins pegged to the US dollar. Some of the major coins are USD Coin (USDC), Binance USD (BUSD), Tether (USDT), Dai (DAI), TrueUSD (TUSD), TerraUSD (UST), and Digix Gold Token (DGX).
Even though there is great potential in stablecoins for payments, Bloomberg reports that Fernandez da Ponte said that PayPal has “…not yet seen a stablecoin purpose-built for payments.” Adding: “There would need to be some clarification on regulation, regulatory frameworks and the type of licenses needed in this space.”
Considering the 377 million users worldwide, PayPal will need a coin that can scale to this volume, as well as a robust security protocol.
More payment options
Whether it’s PayPal or a local small business owner, they both want more payment options. This ensures that customers aren’t turned down when they’re ready to pay. Beyond cash, credit cards and mobile payments, cryptocurrencies are the next payment solution and businesses want to know how to accept crypto payments.
As regulators refine the details, businesses of all sizes should wait and see how they can make full use of cryptocurrencies. Whether it is a regular or a stablecoin, there is pent-up demand waiting to be tapped.