As reported on BNN Bloomberg, PayPal is approaching the launch of its stablecoin. This, as the company is reported to be developing the technology to deliver more payment options for its platform.
Launch of PayPal Stablecoin
According to Bloomberg, this is all coming to light after developer Steve Moser discovered something about PayPal Coin 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, a PayPal spokeswoman said the images and code Moser discovered were part of a recent internal hackathon in its blockchain, crypto, and digital currencies division. Whether PayPal moves forward with this stablecoin or not, it looks like the company is exploring the possibility.
This is an important step as cryptocurrency is becoming more accepted by more businesses and used by even more consumers. If PayPal chooses a stablecoin it will ensure the value will not fluctuate like the other cryptocurrencies.
What is a Stablecoin
As the name implies a stable coin looks to establish stability in a cryptocurrency by pegging itself to a reserve asset such as the U.S. dollar or even gold. This means the coin will always have the same value as the U.S. dollar or the currency it used during minting.
Comparatively, cryptocurrencies such as Bitcoin, Ethereum, or Cardano are unpegged. And because of that, there is high volatility in these coins. And for businesses and consumers that want to use crypto as a merchant tool, stability is of great quality.
Currently, there are several stable coins pegged to the U.S. dollar. Some of the top 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 Fernandez da Ponte said PayPal has, “… not yet seen a stablecoin out there that is purpose-built for payments.” Adding, “There would have to be clarity on the regulation, the regulatory frameworks, and the type of licenses that are needed in this space.”
Considering the 377 million users globally, PayPal will need a coin capable of scaling to that volume along with a robust security protocol.
More Payment Options
Whether it is PayPal or the local small business owner, they both want more payment options. This ensures customers are not turned down when they are 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 iron out the details, businesses of all sizes must wait and see how they can fully use cryptocurrencies. Whether it is a regular or stablecoin, there is a pent-up demand waiting to be exploited.