American financial services institution Paypal is looking to launch its own stablecoin. Evidence of this was found within the source code of the PayPal app by developer Steve Moser, who discovered a 'PayPal Coin' logo referenced in the code.
This was then confirmed by senior vice president of crypto and digital currencies at PayPal, Jose Fernandez da Ponte, who said:
We are exploring a stablecoin; if and when we seek to move forward we will of course, work closely with relevant regulators.
The PayPal Coin will be backed by the United States Dollar and is another movement towards digital currency by PayPal, which launched its 'Checkout with Crypto' service to US consumers in April last year.
While not denying the intention to move forward with PayPal Coin, a spokesperson for the company clarified that the source code found by Moser that contained the PayPal Coin logo was a result of a recent hackathon within the crypto and digital currencies team.
PayPal is looking to continue its momentum around digital assets from 2021 where it announced it would permit digital currency withdrawals and also expanded its cryptocurrency offering in the UK.
PayPal clearly will not want to be met with the same hostility which faced Diem (previously Libra) when Meta (previously Facebook) with Mr Ponte further saying that before PayPal could proceed:
There would have to be clarity on the regulation, the regulatory frameworks, and the type of licenses that are needed in this space.
With significant regulation around digital assets looming this year, PayPal is one of many forward looking companies looking to stay ahead of the curve.