The legendary online payment corporation PayPal is apparently mulling the development of its very own cryptocurrency that would be backed by the United States dollar. This comes as the business continues to incorporate methods for users to interact with digital currencies on its many platforms.
PayPal has acknowledged to Bloomberg that the corporation is only investigating the possibility of launching its very own stablecoin, which is a kind of cryptocurrency that is backed by and tied in value to an existing currency. A developer by the name of Steve Moser searched around in the PayPal app and found evidence that the corporation was experimenting with a cryptocurrency that was going to be named “PayPal Coin” and would be backed by the US dollar.
Moser discovered allusions to a different cryptocurrency called Neo in the iOS program that PayPal offers, as he mentioned on his website, The Tape Drive. At the moment, PayPal enables users to purchase, trade, and hold cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
In October of 2020, PayPal began enabling its US clients to store cryptocurrency, and in March of the following year, it permitted its customers to use supported cryptocurrencies to make purchases from the platform’s 29 million merchants. PayPal does not charge any fees for storing cryptocurrencies; however, it does charge a transaction fee that is either at or below 2.3% of the amount being sent. The security against fraud that PayPal offers for transactions done with cryptocurrencies, much as the safety it offers for purchases made with fiat money on the platform, is an advantage of utilizing PayPal for cryptocurrency purchases.
In spite of the fact that coding proof, such as the presence of a PayPal Coin logo in the app, was the product of an internal hackathon, a business spokeswoman verified this information to Bloomberg. However, the extent to which PayPal has developed its stablecoin is unclear. If PayPal decides to continue through with its cryptocurrency, the name and specifics might presumably be subject to modification.
A request for comment sent to PayPal was not immediately met with a response.
