The reputed online payment company, PayPal is contemplating launching its own crypto coin. The cryptocurrency will be backed by the US dollar. The company has been trying to integrate digital coins on its platforms for some time now. This also underscores the growing popularity and influence of cryptocurrency over the past few years. And now it seems like PayPal is all set to join the cryptocurrency bandwagon.
The What and Why
The company at present is in the exploring phase trying out ways to integrate crypto into its digital platforms. The company is tinkering with the idea of releasing its very own stable coin. Stablecoin is a cryptocurrency that will be linked in value to an existing currency. It will also be backed by the same. The news was confirmed by PayPal to Bloomberg. Steve Moser, the well-known developer had discovered some evidence that hinted that the company was contemplating its very own cryptocurrency which goes by the name “PayPal coin,” which will be backed by the US Dollar. Moser had also found hints about yet another crypto coin called Neo. The references to this crypto coin were found in PayPal’s iOS app.
PayPal has been encouraging and supportive of cryptocurrency for quite some time now. Starting October 2020, the online payment company allowed customers to hold cryptocurrency. In addition to this, in the following March, the company also allowed its customers to carry forward purchases using supported crypto coins. Holding cryptocurrency is free of cost at PayPal however it does come with a small transactional fee which is usually below 2.3 percent. Now the question will be why use PayPal for crypto purchases. The answer is related to a pressing concern in the crypto world namely safety and security. PayPal has this covered as it extends its fraud protection to its purchases thus ensuring that the customers are kept away from the mouth of vulnerability and threat. Technological advancements, although beneficial also come with a downside because the advanced technologies also mean that those waiting to exploit cyberspace will have better opportunities to do so. Thus tightening security and safety is of utmost importance.
There hasn’t been any solid evidence concerning the status of PayPal’s stablecoin development. PayPal is yet to give any official information or announcement concerning the same. However, if it goes forward with the decision to create its own crypto coin, it will be a rather big step.