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PayPal Inches Closer to Launching its very own Stablecoin

PayPal Inches Closer to Launching its very own Stablecoin
Written by publishing team

There has been a lot of news in recent weeks about stablecoins. Late last year, Visa stated that “Stablecoins may become a medium of exchange instead of cryptocurrenciesThe announcement came after Visa launched its crypto advisory services.

Stablecoins are virtual currencies. Unlike cryptocurrencies such as Bitcoin (BTC) and Litecoin (LTC), the values ​​are tied to traditional assets. This could include the US dollar, in the case of USDT (USDT) or even gold in the case of the Paxos Gold backed gold (PAXG) stablecoins.

What are PayPal and its Stablecoin plans?

PayPal Holdings Inc. (PYPL) is an American financial technology company that operates a global online payment system. The platform allows users to send and receive money and make payments online.

PayPal Holdings Inc is launched. In 1998, it is listed on NASDAQ and generated revenues of $21.45 billion in 2020.

In response to greater adoption of cryptocurrencies, PayPal entered the crypto space in late 2020. PayPal has more than 377 million users worldwide. Despite this, it is reported that it took 7 years to go from concept to product.

After PayPal’s successful entry into the crypto space, it may take much less time for the PayPal stablecoin to become a virtual reality.

Overnight, news hit the wires of PayPal planning to launch its own PayPal Coin backed by the US dollar. The report highlights thatEvidence of PayPal’s exploration of building its stablecoin was first discovered in the company’s iPhone app by developer Steve Moser“.

However, it is still unclear how close PayPal is to the actual launch of PayPal coin. According to a Bloomberg report, Fernandez da Ponte, Senior Vice President of Cryptocurrency at PayPal, said:Suitable stable currency Purpose built for payments not yet determined”. He added that “The right stablecoin will need to support payments at scale and have security.”. PayPal will reportedly also need “To clarify the organization, regulatory frameworks and the type of licenses required“.

Regulation is seen as an obstacle to stablecoins

Late last year, Fitch Ratings’ opinions on regulation and stablecoins made headlines. Fitch Ratings sees greater regulatory certainty about the state of stablecoins and their users as a positive market. Reports indicate that regulatory risks, which hit the broader cryptocurrency market at the start of the year, “deterring many financial institutions from doing business with stablecoin operatorsLate last year, we discussed the potential negative impact of regulator rhetoric and activism on the crypto market. However, the appropriate global regulatory framework, which is neither punitive nor lenient, likely to support cryptocurrencies and stablecoins in particular. As Fitch Ratings notes. fiduciary, regulatory certainty will be a key factor.

This article was originally published on FX Empire

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