PayPal confirmed on Jan. 8 that it is “exploring a secret currency” that could be called PayPal Coin after a developer found evidence of such a secret currency in the source code of the company’s iPhone app.
If the company plans to move forward with the stablecoin, it will do so in close collaboration with the relevant regulators, an approach that could help fintech avoid the wrath of states, Jose Fernandez da Ponte, senior vice president of cryptocurrencies and digital currencies at PayPal, said at the time. United. Senators who judged the Metas Diem cryptocurrency project.
The company explained that the source code for the iPhone app was developed in an internal hackathon. When Cointelegraph contacted PayPal to find out more, a spokesperson confirmed the previous report but did not comment further.
It is difficult to assess the potential impact of the PayPal stablecoin on payments in general and on the cryptocurrency industry, and while some experts see the company’s actions as very positive for the industry, others believe that the stablecoin will be the same.
Can PayPal Coin Normalize Cryptocurrency?
It is clear that a traditional financial company that moves into the crypto sector and launches its own stablecoin is different from the original crypto company that launches a stablecoin. Traditional financial companies cater to users who don’t have to deal with cryptocurrency wallets or local volatility.
PayPal itself has over 350 million active users and already allows users in the US and UK to buy, sell and store bitcoin (BTC), ether (ETH), bitcoin cash (BCH) and litecoin (LTC) by making payments in these possible cryptocurrencies. . resources. While it is not clear how many PayPal users have paid with cryptocurrencies, it is known that cryptocoins are primarily a tool used to trade and exploit opportunities in the decentralized finance realm.
PayPal, which is pushing further into the cryptocurrency industry with the launch of stablecoin, may see other traditional banking and payment companies continue to explore blockchain technology, according to Marwan Forzli, CEO of online payment platform Veem. Forsell told Cointelegraph that stablecoins are “more likely to become part of the global payment system” as moving funds in a secure environment with the ability to sign in and out via various apps “is a huge need for small businesses.” Forsley added:
“Paypal Coin can increase public interest in payments in general. Both consumers and small businesses are looking for a safe and secure alternative to traditional currencies and payment networks.”
Max Galka, CEO of blockchain search engine Elementus, seemed to agree with Forzley’s assessment, noting that with globally recognized platforms like PayPal that support cryptocurrencies, stablecoins are instantly placed in “a realm that is trusted by a significant portion of the population.”
For Galka, the launch of its PayPal stablecoin “definitely opens up crypto to more people” who “don’t really want to know more about this niche site.” Galka told Cointelegraph:
“Currently, there are not many well-established and trusted institutions in this area where trust is a critical component. PayPal will be one of the first major financial companies to accept cryptocurrency.”
He said it “comes naturally for PayPal to develop a stablecoin,” as the move puts the company “right on the map as a cryptocurrency company,” potentially boosting other crypto offerings and potentially boosting public confidence in the company. See PayPal Coin “serves many purposes beyond traditional stack coins, using [trust] as payment paths.”
Arbel Arif, founder and CEO of crypto marketplace Shopping.io, told Cointelegraph that he welcomes PayPal’s move into the crypto sector and added that having “big players improving crypto transactions in e-commerce” brings us one step closer to a new era of commerce. . trade. ”
Tim Frost, founder and CEO of asset management platform Yield App, told Cointelegraph that cryptocurrency payments are “finding their place in the mainstream” as a number of companies now allow digital asset holders to pay with cryptocurrencies using a standard Visa or MasterCard. ”
It’s unclear to Frost if the launch of PayPal’s stablecoin will be the start of a transition to a more cryptocurrency-centric world, although he believes it has the potential to do so.