During crypto business expansion: PayPal explores launching USD stablecoin

Payment giant PayPal Holdings Inc. said the company is exploring to launch its own stable currency , as its encryption currency part of business development. The company confirmed the development after someone found evidence of the move in its iPhone app.

“We are exploring a stablecoin. If we seek to move forward, we will of course work closely with the relevant regulators,” Jose Fernandez da Ponte, senior vice president of cryptocurrencies and digital currencies at PayPal, said in a statement to Bloomberg News. Stablecoins are cryptocurrencies that are backed and priced by the value of an existing currency or commodity.

Developer Steve Moser first discovered evidence of the company’s exploration of building a stablecoin in PayPal’s app and shared it with Bloomberg. Hidden code and pictures show a job dubbed “PayPal Coin.” The code suggests that the stablecoin will be backed by the U.S. dollar.

A PayPal spokesperson said the images and code in the PayPal app were derived from a recent internal hackathon — engineers working together across the company’s blockchain, crypto and digital currency divisions to rapidly explore and build something that may never have been possible before. New products released to the public. This means that the final logo, name and functionality may change in its publicly released form.

PayPal has made a major cryptocurrency effort in recent months, introducing new features for buying and holding digital currencies, as well as the ability to make purchases with those currencies.

On the Unchained podcast, Fernandez da Ponte recently stated that the company “has not seen a stablecoin designed specifically for payments.” He further stated that for the use of PayPal, stablecoins need to support large-scale payments and have security .

“The regulation, the regulatory framework and the type of licenses needed in the field have to be clear,” he said.

PayPal isn’t the first tech giant to try to launch its own digital currency. Meta Platforms Inc., the predecessor of Facebook, has been helping to develop a stablecoin called Diem, while Visa Inc. has allowed a dollar-backed stablecoin to settle transactions with its network in recent months.

In fact, several major payment giants such as PayPal have already changed their minds on the encryption industry.

New York-based research firm MoffettNathanson told clients in a report on Dec. 16 that Visa, Mastercard and PayPal do not see the rise of the crypto industry as a threat and will all continue to invest in the crypto ecosystem .

The report highlights the growing acceptance of cryptocurrencies by legacy payment service companies and their efforts to adapt to the changing environment.

Visa sees cryptocurrency as more than payments, seeing it as a layer-two solution that can run on a blockchain network, as the company has done with fiat-based networks. Visa senior vice president and chief global financial technology director Terry Angelos said through an encrypted wallet cooperation, the company expects one to two years will be strong growth in transaction volume in the future.

Raj Dhamodharan, executive vice president of blockchain and digital asset products at Mastercard, said Mastercard benefits from cross-border cryptocurrency in and out traffic from cryptocurrency exchanges and wallets, and sees cryptocurrencies as an opportunity to create new products. The company also intends to be an on- ramp to the NFT market and add cryptocurrencies to its multi-track network as the native currency for settlement.

Meanwhile, PayPal is investing in education-related projects, hoping to reach a wider audience. The company is also working on opening up its platform to allow interaction with DeFi networks and enable users to securely transfer cryptocurrencies through digital wallets , said Edwin Aoki, the company’s technical researcher and chief technology officer for blockchain encryption and digital currencies.

In addition, PayPal now actively monitoring process of the first layer and the second layer network expansion payments, including Ethernet Square, Polkadot , Solana and Algorand . Paypal is studying how these networks and their currencies fit into its plans for a scalable payments infrastructure.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/during-crypto-business-expansion-paypal-explores-launching-usd-stablecoin/
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