News

PayPal Working On Its Own Cryptocurrency, But Why?

Paypal Working On Its Own Cryptocurrency, But Why?
ADVERTISEMENT

PayPal sees itself launching a cryptocurrency in the future. The announcement comes after the fintech giant started accepting crypto trading in 2020, although the service was available to users based in the United States.

With this move, people started using the online payment processing platform to buy and sell virtual currencies such as Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.

The list of offers cryptocurrency offers the company offered broadened in 2021. Now, the company is apparently considering having its very own cryptocurrency.

ADVERTISEMENT

The company plans on launching a "stablecoin," which means it may develop a cryptocurrency that is pegged on a fiat currency. In PayPal's case, that will be the dollar.

Stablecoins are believed to have greater stability.

PayPal has not been exactly open about its plans to launch a cryptocurrency. A developer saw a hidden reference to a "PayPal Coin" in their app and publicized the discovery.

ADVERTISEMENT

Since the plan is in the early stages, both the name and the project might change over time.

Why Would PayPal Launch A Cryptocurrency With So Many Others To Choose From?

ADVERTISEMENT
Paypal Working On Its Own Cryptocurrency, But Why?

People wonder why the company has decided to have its own virtual currency when there are already so many good options around. The legitimacy of these coins has been increasing in the mainstream financial world over time.

Bitcoin ETF has even started trading at the New York Stock Exchange (NYSE). El Salvador has legalized Bitcoin as legal tender, and AMC Theaters now accept Bitcoin payments.

ADVERTISEMENT

As it turns out, the issue PayPal has is that there are no stablecoins specifically created for payments, which is what they need. This has forced the company to come up with its own solution.

In any case, the company also needs a currency that can support the scale of payments they handle and still provide a high-security level.

Otherwise, the company is still working to clarify the legal issues surrounding cryptocurrencies before making a move.

Still, generally speaking, PayPal's decision to launch its virtual currency makes sense, considering how popular virtual currencies have become in the last few years.