Online payment service PayPal is considering launching its own cryptocurrency, Jose Fernandez Daponte, senior vice president of cryptocurrencies and digital currencies, told Bloomberg Told.
PayPal is considering the possibility of issuing so-called stablecoins, top executives explained. Such cryptocurrencies are fixed to existing currencies or other real-world assets and help stabilize their value. Fernandez da Ponte assured that if the company decides to launch its own cryptocurrency, it will work with regulators to do so.
Bloomberg states that
signs that PayPal is creating cryptocurrencies were found by developer Steve Moser in the code for a digital wallet application for the iPhone. According to the information and images received, the cryptocurrency may be called PayPal Coin and will be pegged to the US dollar.
A PayPal representative explained to Bloomberg that the revealed images and code are the result of a hackathon in the Department of Blockchain, Cryptocurrency and Digital Currencies. At hackathons, developers usually create and test new products that may not reach a fullfledged launch: this means that the PayPal cryptocurrency logo, its name and characteristics may change by the time of the public release, Bloomberg noted.
PayPal allowed users to pay with cryptocurrencies in March 2021 and has since expanded its set of tools for transactions with it. The admission of cryptocurrencies to PayPal and their acceptance by other institutional investors has been one of the reasons for the new rise in the value of cryptocurrencies, especially bitcoin, the price of which rose above $68,000 in November 2021. Since then, the price of the world’s largest cryptocurrency has fallen by 40%.