PayPal Confirms It’s Exploring Its Own Stablecoin

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The cryptocurrency is backed by the US dollar. 

PayPal Launching Its Own Stablecoin 

The evidence of the move was found in its iPhone app. PayPal said in a statement to Bloomberg:

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

PayPal opened its crypto trading in 2020. All eligible users can buy, sell and hold bitcoin, litecoin, bitcoin cash, and ethereum. With the said service, US customers can check out with crypto. 

Hidden Code in the App

Steve Moser, a developer, found hidden code for a PayPal coin in the iPhone app of the company. The coin will be backed by the US dollar, according to Steve. It may feature the logo of Paypal with two slashes. However, the actual image may change once the stablecoin is ready for launch. That is if PayPal will continue its plan. 

PayPal isn’t the first tech company to explore in launching its own coin. Meta is said to be developing a stablecoin.

What are Stablecoins? 

They are digital currencies backed by assets, such as fiat currency, cryptocurrency, or gold. With stable assets, the coins become less susceptible to fluctuations. As result, the prices are more stable. But some stable coins utilize a computer algorithm to ensure the value are comparatively stable. 

These coins are built to withstand volatility compared to other cryptocurrencies. They offer mobility and accessibility. They are not tied to a centralized agency. There are various reasons many people are investing in stablecoins. For one, they allow faster transfer of money. Plus, they provide privacy of data. They let users circumvent financial service fees. 

In terms of value, they are designed to stay put. It means that their value won’t fall or rise. 

You may consider them as a form of digital cash. But they are still a cryptocurrency. In that case, they have undiscovered risks. 

Financial experts don’t recommend putting all your savings into cryptocurrency. Instead, you must approach them with an open mind. 

Because they are more stable than other cryptocurrencies, you can use them as your first step to investing in crypto. 

What are the Top Stablecoins in the Market? 

There are various stablecoins available. 

One is Tether. Launched in 2014, one Tether has a value of 1 USD. It’s the largest stablecoin. But because it’s the largest, it’s pressured to compile reports about its reserves. This will prove that it is able to maintain its peg to the dollar. 

Binance is another popular stable coin, which launched in 2019. Its supply is limited by dollar reserves, which are audited monthly. Binance, a crypto exchange is a founding member. Thus, when you use it to convert crypto to BUSD through Binance, it entails no fees. 

Are Stablecoins Risky? 

There are always risks when it comes to cryptocurrency. The entities that issue them have power that can be likened to banks sans licenses or audit requirements. Thus, experts want stablecoins to be regulated like banks. Because of their bank-like activities, any misstep can have consequences affecting the crypto economy.


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Author: Jane Danes

Jane has a lifelong passion for writing. As a blogger, she loves writing breaking technology news and top headlines about gadgets, content marketing and online entrepreneurship and all things about social media. She also has a slight addiction to pizza and coffee.

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