Governments and technology companies show a keen interest in developing native stablecoins. Unsurprisingly, PayPal would like to do the same, and development on the project seems underway already. A remarkable decision, although the payment processor will work with regulators to check all of the right boxes.
PayPal Coin Might Be A Thing
Many unknowns and uncertainties regarding PayPal’s venture into the stablecoin world are still unknown. Although a developer has found evidence of such a project in the source code of the firm’s iPhone app, not much has been confirmed at this stage. The code appears to pertain to an internal hackathon and does not constitute an official project. As PayPal has only recently ventured into the world of cryptocurrencies, launching a native stablecoin may not be the most opportune option right now.
However, the experimentation with blockchain and crypto technology isn’t surprising either. Paypal users in the US and UK can buy, sell, and hold Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. They can also use all of those assets for payments. PayPal has yet to offer any details on how users perceive these options and whether there is any demand for them. Adding stablecoins to the mix makes sense, as they are a core pillar of cryptocurrency activity today.
One can argue that PayPal is in a stronger position to explore stablecoins than most governments or technology companies. It has an established reputation in the payments space. Moreover, it can scale quickly to reach hundreds of millions of users, allowing the firm to gather community feedback and suggestions. PayPal Coin could prove beneficial to other stablecoin projects, as they can leverage the findings of a project tailored toward consumers and small businesses.
Finding a trusted organization willing to experiment with cryptocurrency and its technology has been an ongoing challenge. PayPal could become the proverbial poster child of the stablecoin industry, assuming the company wishes to pursue opportunities in this space. For now, it is anyone’s guess whether the company will do so in the coming months.