PayPal Confirms It's Working on Its Own Stablecoin After Developer Finds Code in iOS App: Report

PayPal's stablecoin plan seems underway but is at a very nascent stage as of now.

By Shomik Sen Bhattacharjee | Updated: 10 January 2022 19:22 IST

PayPal Confirms It's Working on Its Own Stablecoin After Developer Finds Code in iOS App: Report

Photo Credit: PayPal

PayPal has been heavily investing in improving its global crypto charge

Highlights

A stable-coin's value is backed by a specific asset
PayPal's stable-coin may be named 'PayPal Coin'
PayPal began allowing people to hold crypto in wallets in 2020

PayPal, the popular multinational financial technology company has reportedly indicated its interest in "exploring" the prospect of launching its very own stablecoin, which is a cryptocurrency pegged to the value of fiat or a reserve asset like gold, silver, etc. The indication arrived after developer Steve Moser discovered references to something called “PayPal Coin” within the company's iOS app, which also featured PayPal's logo in it. Stablecoins have grown in popularity for making transfers between exchanges and crypto use in day-to-day commerce, simpler.

Following Moser's findings, Bloomberg said in a report that PayPal senior vice president of crypto and digital currencies Jose Fernandez da Ponte has confirmed the findings.

PayPal is working on a stable coin called ‘PayPal Coin'. Found the logo in their iOS app. #USDC #UST #tether #USDT #PayPalCoin https://t.co/1SGuRKZ9NS pic.twitter.com/j6D0JaHW8Q
— Steve Moser (@SteveMoser) January 7, 2022

"We are exploring a stablecoin," Bloomberg quoted Fernandez da Ponte as saying. "If and when we seek to move forward, we will of course, work closely with relevant regulators." But a company spokesperson also said the code Moser found resulted from a hackathon, so it's not considered final.

PayPal began facilitating the purchase of select cryptocurrencies in late 2020, and in early 2021 added a "Checkout with Crypto" feature to let users buy things with their digital assets.

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The company's existing support for cryptocurrencies is limited to Bitcoin, Bitcoin Cash, Litecoin, and Ether. However, Moser says that PayPal's app also revealed that it's working to support the Neo cryptocurrency, in addition to exploring the possibility of introducing its own stablecoin.

During an earnings call last year, the digital payments provider also outlined plans for a dedicated business unit for PayPal's crypto ambitions which included working alongside regulators outside the US market to accept new forms of digital currencies.

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PayPal says it has over 375 million daily active users and 30 million merchants on the platform. While the company does not charge any fee for holding cryptocurrency, it does charge users for transactions and currency conversions.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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