PayPal Holdings Inc. is a United States financial technology company that manages an international online payment system. The system permits users to send and accept money from any part of the world and also make online payments. It commenced operations in 1988 and, as of 2020, yielded revenue of roughly $21.45 billion. The Fintech firm allegedly verified its intentions to introduce its household stable coin, calling it ‘PayPal coin’. This doesn’t come as a surprise as the company has been extending its cryptocurrency business division since it permitted trading by users in late 2020 with an approximate average of 377 million users across the globe. 2021 saw the company disclose a new service tailored to trading in the UK market, and also increased its buy limit for crypto in the past year.
You’ve Heard Of Stablecoins
They are digital currencies backed up by local currencies, and their value is rooted in traditional assets. Such assets vary from gold to the US dollar in the case of USTD. They are usually more reliable or “stable” than other cryptocurrencies.
How Was This Plan Discovered?
A developer first discovered this information in the source code of PayPal’s iPhone application. He found some coded codes and proposed icons of the PayPal coin which showed PayPal’s current logo with two horizontal lines slashed across it. Steve Moser’s findings also made it known that the stablecoin will find its backing in the U.S. Dollar. The codes were, however, reported by PayPal’s spokesperson to be a result of a recent hack by a unit of the firm, focused on digital currencies, Crypto, and blockchain.
The Senior Vice President, PayPal Holdings, corroborated the information uncovered by Moser in an interview with Bloomberg that they were indeed considering the possibility of a stable coin. He additionally asserted the company’s willingness to partner with ‘relevant bodies’ if they eventually decide to follow through with the launch. While PayPal’s stablecoin is still in the planning phase, its description that had already been leaked by Moser are most likely to take a new look upon the coin’s official launch, if, of course, the company decides to follow through with the plan.
Possible Reason Behind The Idea
The idea behind PayPal’s stablecoin seems to have subtly come to light in a Ponte interview in late 2021, where he mentioned, “PayPal is yet to see a stable coin that is specifically tailored for making payments.” He also stated that a stable coin ought to aid payments at a large scale while guaranteeing the security of the network at large. This may have been the idea behind the proposed PayPal coin.
Going by the successful branching of PayPal into the crypto world, it may take less time for the PayPal coin to be a virtual success. Well, of course, this is only speculation. Do you think the PayPal coin will become a reality in the near future?