Paypal is reportedly working on a stablecoin backed by the U.S. dollar to expand its cryptocurrency offerings. “We will, of course, work closely with relevant regulators,” the company stressed.
Paypal plans to launch its own USD-backed Stablecoin
Paypal Holdings Inc. is said to be exploring the launch of its own US dollar-backed stablecoin as part of the company’s cryptocurrency campaign, Bloomberg reported on Friday.
Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at Paypal, confirmed to the publication:
We are exploring a stablecoin; if and when we seek to move forward, we will of course work closely with the regulators concerned.
The evidence of Paypal’s stablecoin was first spotted by developer Steve Moser, who shared his findings with the news outlet. He noticed hidden code and images in Paypal’s app showing work on “Paypal coin” that is backed by the U.S. dollar.
A Paypal spokesperson explained that the images and code inside the Paypal app came from a recent internal hackathon. This means that the final logo, name and characteristics of the stablecoin could be different from what is currently displayed in the code.
Fernandez da Ponte recently said on the Unchained podcast that Paypal has “not yet seen a stablecoin out there that is purpose-built for payments,” the publication conveyed.
Noting that a stablecoin would need to support large-scale payments and have security for using the payments giant, he said:
There would have to be clarity on the regulation, the regulatory frameworks, and the type of licenses that are needed in this space.
