PayPal, the online payment service, is exploring the ground on extending its crypto support, after 2020’s acceptance of crypto payments and last year’s buying the crypto startup Curv. Bloomberg confirms that the company is looking into developing its own stablecoin.
The news was confirmed after evidence of stablecoin code was found inside the PayPal app by a developer. A picture surfaced with a part of the code showing work on what is currently dubbed “PayPal Coin.”
Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal, has confirmed the rumors for Bloomberg: “We are exploring a stablecoin; if and when we seek to move forward, we will, of course, work closely with relevant regulators.”
He further adds that he has “not yet seen a stablecoin out there that is purpose-built for payments,” which could make the coin the first of its kind.
Stablecoins are cryptocurrencies that are backed by a physical currency or another tangible asset. PayPal coin is speculated to be backed by the US dollar.
While no conclusive decisions have been made, the inception of PayPal Coin could further propel all crypto assets, as it already has in the past, whenever the company showed support for cryptocurrencies. PayPal would also join the list of companies who have endorsed creating their own stablecoins in the past, such as Meta or Visa.