If the crypto market crash made you nervous and you thought that the crypto space would be dead, you might want to change your thinking. PayPal, the e-payment giant across the globe is planning for their own digital currency, the PayPal Coin.
PayPal is examining the enhancement of a stablecoin, probably backed by the US dollars, even though there is no data on a roadmap for the project. Speaking with a big media house, the senior vice president of crypto and digital currencies at PayPal Jose Fernandez da Ponte, exposed that the endeavor was just an experimental, yet very serious, even though there were no firm plans for a practical execution yet. He promised, however, that if accepted, the currency would meet all important regulatory standards:
“We are exploring a stablecoin; if and when we seek to move forward, we will, of course, work closely with relevant regulators.”
PayPal Coins: Why Did They Choose Stablcoins?
The growth of a stablecoin provides certain benefits for PayPal. For instance, it dodges the regulatory stress that exists around the more fluctuating and decentralized digital currencies, it offers peace of mind to users that the amount they keep in their wallets will have the same value throughout the time. The PayPal Coin is also better suitable to the business model of PayPal, which is primarily a licensed money transmitter.
PayPal Coin, the (not so) artistic codename of the digital currency, was discovered at the beginning of this year by Steve Moser, who is a software developer who in November 2021 also declared that the code of the PayPal App had references to a possible agreement with the NEO crypto.
NEO is a smart contract blockchain that is created mainly in China and is known as the Chinese Ethereum. It enjoyed a lot of fame during the boom of 2017-2018, mainly as it was incremented as among the first Ethereum killers. However, it could not capture the attention of the public in the following years. It is presently ranked 69th in the TOP 100 digital currencies with the biggest market capitalization.
The Next Steps in Creation Of PayPal Coin
The bet of PayPal is the next step in the interest of the company in the world of cryptocurrencies. Peter Thiel already cautioned in 2021 that BTC could be a financial arm of China and called to push for development and research in the U.S. industry so as not to be left behind in the race to control the cryptocurrency and digital asset space.
In 2020 PayPal declared a feature to purchase Bitcoin, Litecoin, Ethereum, and Bitcoin Cash through Bitcoin to PayPal instant and has since broadened its services, enabling the sale of cryptocurrencies, and working on offering this service to other nations. And the PayPal cryptocurrency list is not wide enough. But if you are wondering about how to buy Bitcoin with PayPal you will get many guides on this.
And it is also crucial to notice that this e-payment giant was a founding member of the Libra Association, which is an initiative conducted by Facebook to create a digital currency that is controlled by several large corporations. The project finally failed, but this company seems to be willing to learn from the mistakes of Facebook in order to effectively launch its own currency, the PayPal Coin. But no details about the PayPal cryptocurrency fees or any other details about the PayPal crypto have been released yet.