Global online payment system mulls creating own crypto, but looks to US dollar for support
Tech giant PayPal is preparing to launch its own crypto token, the company confirmed after signs of the move were found on its iPhone app.
“We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators,” the head of PayPal’s crypto department, Jose Fernandez da Ponte, said in a statement to Bloomberg News.
The company is looking at creating a stablecoin – a cryptocurrency backed by the value of a fiat currency or commodity.
PayPal’s move to create a stablecoin was discovered in its payment app by developer Steve Moser, who broke the news to Bloomberg. According to his findings, the coin is called ‘PayPal Coin’ and would be backed by the dollar.
A PayPal spokeswoman said the product, for now, is in development within the company’s blockchain, crypto and digital currencies division, and its final name and features may change when it is ready to launch.
This is not the first step towards embracing crypto technology for PayPal, which recently launched new features to buy, hold, and pay with digital coins.
Da Ponte recently mentioned stablecoins on the ‘Unchained’ podcast, saying that for PayPal’s use, a stablecoin would need to support payments at scale and have security, while also fitting into existing regulatory frameworks.
Apart from PayPal, other tech giants have been looking at creating their own cryptocoins. The rebranded Meta Platforms, formerly known as Facebook, has been helping with Diem, which was born in 2020 after Facebook’s Libra crypto department announced the new name and organizational independence from the company.
