PayPal Is Developing a Cryptocurrency of Its Own
If the market fall made you concerned and convinced you that the crypto business was doomed, you may want to reconsider. PayPal, the world’s largest e-payments company, is creating its own cryptocurrency.
PayPal is investigating the construction of a stablecoin, likely tethered to the US dollar, but no timeline for the project has been disclosed. According to News, Jose Fernandez da Ponte, PayPal’s senior vice president of crypto and digital currencies, disclosed that the venture was experimental in nature but quite serious, despite the absence of definite plans for a practical implementation. He guaranteed, however, that if the currency is accepted, it would adhere to all applicable regulatory standards:
“We are examining the possibility of launching a stablecoin; if and when we do, we will, of course, work closely with appropriate authorities.”
PayPal benefits from the establishment of a stablecoin. For instance, it avoids the regulatory constraints associated with more volatile and decentralised cryptocurrencies, and it gives clients with the assurance that the funds in their wallets will retain their value over time. Additionally, it is more compatible with PayPal’s business model, which is basically that of a regulated money transmitter.
PayPal Coin, the cryptocurrency’s (less than) imaginative codename, was found earlier this year by Steve Moser, a software engineer who also disclosed in November 2021 that the PayPal App’s code had allusions to prospective interoperability with the NEO cryptocurrency.
NEO is a smart contract blockchain that was first created in China and was dubbed the Chinese Ethereum. It grew in prominence during the 2017-2018 boom, mostly due to its promotion as one of the first Ethereum killers. However, it was unable to maintain public interest in succeeding years. It is now rated 69th in the TOP 100 most valuable cryptocurrencies by market capitalization.
The Following Stage In The Grander Scheme
PayPal’s wager is the company’s latest foray into the realm of cryptocurrency. Peter Thiel had warned in 2021 that Bitcoin may be used as a financial weapon by China and urged the US business to invest in research and development to avoid falling behind in the fight to control the cryptocurrency and digital asset markets.
PayPal launched a function in 2020 that let users to purchase Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Since then, the company has extended its services, allowing for the selling of cryptocurrencies, 3, and working on expanding the service to further countries.
Additionally, PayPal was a founding member of the Libra Association, a Facebook-led project to build a cryptocurrency backed by numerous significant firms. Although the idea eventually failed, PayPal is eager to learn from Facebook’s experiences in order to launch its own currency effectively.