PayPal is Making its Own Cryptocurrency, Will be Backed by a US Dollar

After supporting the trading and payments in cryptocurrencies, PayPal is now planning to make its own coin named PayPal Coin.

This was initially found in PayPal’s iOS app code and later confirmed by the platform’s senior VC to Bloomberg. The so-called PayPal Coin will be a stablecoin that’ll be backed by the US Dollar, he clarified. More information on this is yet to be known.

PayPal Coin in Pipeline

PayPal is Making its Own Cryptocurrency, Will be Backed by a US Dollar

PayPal, the cross-border payments platform that started supporting trading and payments with cryptocurrencies last year, is now working on its cryptocurrency! This was confirmed by the platform’s senior vice president, Jose Fernandez da Ponte to Bloomberg as;

“We are exploring a stable coin; if and when we seek to move forward, we will, of course, work closely with relevant regulators.”

This confirmation comes after a tip from Steve Moser, an app developer who found PayPal’s plan in the app’s iOS code. The code said hinted towards something called “PayPal Coin”, and images describing it. Later, a PayPal spokeswoman clarified that the injection could be from a recent internal hackathon.

“This is an event where engineers team up to quickly explore and build new products that may never see a public release”

Well, PayPal confirmed this upcoming native cryptocurrency will be backed by the US Dollar, and be considered as a stable coin. Stablecoins are something that has their value pegged to an existing real-world currency or a commodity. This makes sure the value of coin face less volatility when compared to other general cryptocurrencies.

And there’s a reason why PayPal is making a stable coin. In a talk at the Unchained podcast, Fernandez da Ponte said the platform has “not yet seen a stablecoin out there that is purpose-built for payments.Further,  he said they’d consent and consider the relevant authorities before launching their cryptocurrency.

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