PayPal apparently wants its own stablecoin: What is it all about?

Digital payment company PayPal has made a major foray into the crypto industry and is now exploring the possibility of launching its own stablecoin.

PayPal checks stablecoin integration

Developer Steve Moser found evidence in the PayPal app that revealed the company’s intention to deal with stablecoins. He shared the data – hidden code and images – of what could now become the “PayPal Coin”. According to reports, the coin is backed by USD.

Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal, confirmed the information in a statement to Bloomberg:

“We are investigating a stablecoin; if and when we want to move forward, we will of course work closely with the relevant regulators.”

As he also points out in a podcast, the intention seems to be to create a stablecoin “designed specifically for payments.”

Previously, we had reported that PayPal is thinking about introducing its own digital coin. To this end, there was also a collaboration with developers such as Ava Labs.

But seriously: Do you want to own a PayPal cryptocurrency?

PayPal is not a newcomer to crypto. They had launched a service to convert users’ holdings into fiat currencies(Bitcoin, Ethereum, Bitcoin Cash and Litecoin). However, the function evoked a mixed response.

Review by Bitcoin guru Andreas Antonopoulus

Andreas Antonopoulos has also already commented on Paypal’s crypto function:

“If you buy your Bitcoin through PayPal, you haven’t bought Bitcoin. What you’ve bought is a dependency on the Bitcoin price, brokered by a custodian who you hope will do good risk management. But you can’t check if there are actually reserves.”

What speaks against PayPal

PayPal is no longer considered the safest payment method. Here are some important points to consider:

  • The platform’s reimbursement policy is delicate. Many users claim that PayPal’s policies have led to inconsistencies and have been useless to them.
  • Users’ privacy is not protected, and there is no censorship-free transfer.
  • Unlike a decentralized crypto network, the payment platform takes care of what you do professionally. The company could freeze your funds if they suspect that your activities are not in line with their morals.
  • Funds can be frozen without prior notice, and it is unclear when – or if – the user will get their money back.
  • Cross-border payments are complicated and can take a lot of time.
  • The fees are very high.

We don’t yet know what their own stablecoin might look like, but a payment company like PayPal is far from decentralized, contradicting – or even insulting – the cryptocurrency’s original ideals.

While they are trying to jump on the wave of crypto hype, one should be careful with the products given their history.

The tax office takes tough action against PayPal payments

In addition, President Biden has just signed the $1.9 trillion U.S. bailout plan, which includes a requirement for payment companies like PayPal or Venmo to report to the tax agency all transactions totaling $600 or more a year.

Users must “file and submit a Form 1099-K” to report all commercial income, according to the IRS. Previously, the platforms only had to report transactions over $20,000.

Read More:

  1. Ripple’s XRP in the Crossfire
  2. Ferrari enters the NFT universe
  3. Winz.io revises platform and launches 2 bonus

Cryptocurrencies are a very volatile, unregulated investment product. Your capital is at risk.

3 thoughts on “PayPal apparently wants its own stablecoin: What is it all about?”

Leave a Comment

error: Content is protected !!