Global payments giant PayPal has announced that it is working on the introduction of its own cryptocurrency, a stable coin.
“We are checking stable coins; Of course, if we seek to move forward, we will work closely with the relevant regulators,” Jose Fernandez da Ponte, PayPal’s senior vice president of Crypto and Digital Currency, said in a statement to Bloomberg News.
Fernandez da Ponte recently said the company “has not seen a stable coin specifically designed for payments”. Regarding the use of PayPal, he said that stablecoins should support large payments and provide security.
Why stablecoins for PayPal?
Evidence of the company’s study to build stable coins was first found in the PayPal app developer Steve Moser.
Hidden codes and pictures show work on the so-called “PayPal Coin”. The code indicates that the coin contains indications of possible compatibility with the NEO cryptocurrency.
NEO is a smart contract blockchain mainly developed in China and known as Ethereum China. He enjoyed immense popularity during the 2017-2018 boom, mainly because he was promoted by Ethereum as one of the first killers.
The development of a stable coin model also offers certain advantages for paying companies. For example, it avoids regulatory pressure from more volatile and decentralized cryptocurrencies and assures customers that the amount they hold in their wallet will have the same value over time. It’s also better suited to the business model of a payments company, which is basically a licensed money translator.
Payments companies have been hard at work on cryptocurrencies over the past few months, introducing new features for buying and storing digital coins, as well as the ability to pay for purchases with cash.