Leading payment solution firm, PayPal, has confirmed the rumors that it is planning to launch its stablecoin. The rumors of PayPal’s new project started flying around following an unmasking of a code by Steve Moser (a coder) through a scan of the payment solution’s app code for iPhone users.
Rumors And Confirmation Of Rumors
A top-level executive of the company disclosed to Bloomberg confirmed the rumors but quickly remarked that the company will work closely with the appropriate agencies when moving forward with the project. However, he denied what Moser found as untrue, stating that what Moser found as part of their engineers’ hackathon testing out various projects, most of which may never be launched.
PayPal’s stablecoin (temporarily known as PayPal coin) would be pegged to the USD. But the main goal of stablecoin is to reduce transaction charges involving PayPal to the barest minimum. If the exec’s statement about Moser’s claims is true, the name of the stablecoin will likely be modified as many FinTech firms love keeping the public in suspense regarding their new projects.
This launch will make it easy for almost all PayPal merchants and customers to embrace the crypto payment settlement ideology. Some have refused to enable crypto payments for their payments and services after PayPal enabled that feature for them in specific countries. The majority cited the crypto market volatility as their reason for not accepting crypto payments made via PayPal.
Will Paypal Disable The Current Crypto Feature?
While PayPal is yet to disclose whether it will disable the current crypto feature that allows its users to purchase BTC, ETH, LTC, and BCH for as low as $1 once it launches its stablecoin. PayPal is arguably the leader in the payment solution industry. A recent Datanyze data revealed that the company processes almost 55% of all the payments done in the payment solution industry.
Apart from providing payment solution services, PayPal users (including small and medium enterprises) can also get loans and update their payment records from their PayPal dashboard. But it has to be noted that PayPal’s dominance doesn’t extend to Asia. WeChat pay and Alipay remain the dominant players in the payment solution industry in that region.
Following The Footsteps Of Other FinTech Firms
Many stablecoin issuers peg it to the USD to ensure that their stablecoins aren’t subject to the huge volatility commonly associated with digital currencies. If the PayPal coin launch is successful, PayPal will be following the footsteps of amazon in having a native token.
Amazon’s Amazoncoins have been in existence for many years even though it’s only useful to pay for games and apps on the amazon app and website. However, it’s quite popular among Amazon users. Even though PayPal has now confirmed the rumors of its stablecoin launch, it has yet to release a schedule of trials or launch for it.
While no one doubts PayPal’s developers’ capabilities in accomplishing a successful stablecoin rollout or getting the nod of regulatory authorities, they need to keep in mind that Facebook (now meta) has continued to struggle in launching its stablecoin for many years. Despite the name change from Libra to Novi, Facebook has been facing various regulatory challenges.
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