Global fintech firm and online payment platform Paypal has reportedly initiated its plans to develop its proprietary crypto stablecoin coined the PayPal coin.
The discovery came from famous iPhone app developer Steve Moser who earlier this week revealed that he had stumbled on a source code on a mobile app for iOS. The source code indicated that groundwork is already being done for introducing digital assets into PayPal’s framework, introducing a new era for fintech, one that will see an increase in its relevance in the global crypto community.
PayPal Confirms Moser’s Discovery
Source code-backed evidence sourced by Steve Moser kickstarted a wave of rumors and speculations in the crypto community globally when it was revealed earlier this week as community members perceive this new development as part of a growing trend that has seen the thinning of the line dividing traditional and decentralized finance systems.
PayPal’s crypto and digital currencies arm senior vice president Jose Fernandez da Ponte confirmed Moser’s discovery as a fact in a press release. In the release, he said that the firm is currently exploring the idea that is stablecoin; the exploration had started and will continue until it bears fruit while also making sure that their incursion into the industry doesn’t break any regulations taboo in the industry.
Before the stablecoin dev reveal this week, da Ponte might have hinted at its development in an interview in November last year when he said that there isn’t a stablecoin in existence that is tailored only for payment and transaction purposes yet. He later added that given the scale of the industry, there should be a stablecoin that can be used for payment purposes no matter the scale while also securing the network efficiently.
PayPal Coin Will Be Backed By The US Dollar
Moser’s discovery has had a far-reaching effect in the industry thanks to PayPal’s confirmation; as a fresh start of the year that has seen numerous innovative technologies leveraged on the blockchain systems being introduced, this new development is the recipient of a big welcome in the community.
The coming integration of crypto globally by the Fintech giant shows an all-time increasing relevance the industry is fielding in the traditional finance sector globally. Many in the community perceive this development as the world taking a giant step towards the advent of cryptocurrency, not unlike the era of gold in the late 19th century.
The now publicized PayPal coin in the works will reportedly be pegged to the United States USD. Meanwhile, an anonymous spokesperson from the giant further revealed that the unveiled source code on the iPhone mobile apps was coded in a just-concluded hackathon.
Nothing Is Set In Stone
While the fintech giant has confirmed the speculations of its stablecoin development, it further stated that anything could be changed concerning the project; nothing is set in stone, a spokesperson said.
The stablecoin name, appellation, logo, working principles, and even the source code might still be changed before the project launch.
Regulations With Regards To Paypal’s Project
Due to regulations and compliance grey space globally, crypto firms are having a hard time figuring out how to behave compliantly; given this, PayPal has taken preemptive measures to work closely with regulators before project launch to prevent unwanted prosecutions attention.
A statement released by the team stated that before any details of its stablecoin launch are provided to the public, absolute clarity on regulations, compliance, and proper licensing will be hashed out with regulators both locally and internationally.