PayPal is apparently mulling the introduction of its own cryptocurrency backed by the US dollar, as the online payment company seeks to incorporate options for users to interact with digital coinage on its platforms.
PayPal acknowledged to Bloomberg that it is currently examining the possibility of launching its own stablecoin, a cryptocurrency backed by and pegged to an existing currency.
PayPal has made a huge push into cryptocurrencies in recent months, introducing new services for buying and holding digital currencies, as well as the ability to pay for transactions with them.
Steve Moser, a developer, delved inside the PayPal app and discovered evidence that the company was experimenting with a cryptocurrency dubbed “PayPal Coin” that was backed by the US dollar.
Going crypto
Moser also discovered connections to another cryptocurrency, Neo, in PayPal’s iOS app, according to his website, The Tape Drive.
PayPal presently enables the purchase, sale, and holding of Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
https://www.youtube.com/watch?v=E0_0sBZMg5Y
PayPal began allowing its US customers to store cryptocurrency in October 2020, and in March of the following year, they were allowed to make purchases with supported cryptocoins from the platform’s nearly 30 million merchants.
Protection vs fraud
PayPal does not charge fees for bitcoin storage, although it does charge a tiny transaction fee of up to 2.3%. The benefit of utilizing PayPal for cryptocoin purchases is the same fraud protection it provides for purchases done with fiat cash on the site.
It’s unclear how much PayPal has invested in its stablecoin, but the code proof, including a PayPal Coin logo seen in the app, was the result of an internal hackathon, according to a company representative.
If PayPal goes ahead with its cryptocurrency, the name and details are likely to change.
PayPal isn’t the only technology behemoth to consider developing its own cryptocurrency. Meta Platforms Inc., formerly Facebook, has been assisting in the development of a stablecoin known as Diem, while Visa Inc. has recently authorized a stablecoin backed by the US dollar to settle a transaction with the network.
Image courtesy of Cointelegraph News/YouTube