PayPal is considering launching its own asset-backed stablecoin

[Shawn Knight]

In brief: PayPal is looking into the possibility of launching its own stablecoin, a type of cryptocurrency that is financially backed by another asset, as it looks to further expand its crypto division.

As the name suggests, most stablecoins are backed by an existing asset of value, like fiat currency, exchange-traded commodities (such as precious metals) or even other cryptocurrencies, as a way to stabilize their value.

The Tape Drive’s Steve Moser discovered evidence of a coin called PayPal Coin within PayPal’s iOS app. When reached for comment by Bloomberg, Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal, said the company was exploring a stablecoin, adding that if and when they seek to move forward, they will work closely with relevant regulators on the matter.

If anyone has a shot at making a viable stablecoin, it's PayPal. Founded in the late 90s, the financial technology company has been at the leading edge of online payments ever since. More recently, PayPal has made meaningful headway into the crypto space.

After backing away from Facebook’s ill-fated Libra cryptocurrency in 2019, PayPal started allowing customers in the US to buy, hold and sell four types of cryptocurrency on its platform and brought similar functionality to Venmo. PayPal also acquired crypto security firm Curv, increased weekly purchase limits and rolled out its crypto services to customers in the UK.

Illustration credit: Coinbase

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https://www.techspot.com/news/92907-paypal-considering-launching-own-asset-backed-stablecoin.html

 

[ScottSoapbox]

A gold-backed stable coin would be a nice mix of old and new.

 

[umbala]

A gold-backed stable coin would be a nice mix of old and new.

Yes, let's start calling this crypto nonsense "stablecoin" that will make people trust it more!

PS. - I'm launching a "stablecoin" too and it's backed by my pubes.

 

[Uncle Al]

Two losers do not make a winner .....

 

[yRaz]

Yes, let's start calling this crypto nonsense "stablecoin" that will make people trust it more!

PS. - I'm launching a "stablecoin" too and it's backed by my pubes.

just your pubes? I was going to start my own stablecoin backed by goats

 

[QuantumPhysics]

How much money ya'll want to lose this year?

 

[ypsylon]

While mining crypto is scam, something created and guaranteed by PP - biggest e-payment system in the World still - this has some legs.

It would be a great tool for everybody if 'stablecoin' (name is kind of stupid because next more even stable coin will be rockhardcoin LOL) has fixed exchange rate to dollar. So 1 SC=1$. Then you can basically transfer money within PP network using blockchain as a carrier and not banks or other governmental institutions. If you take away speculation factor of mining and trading on crypto-scam-exchanges - that's why that fixed ratio is very important - it'll be useless for miners and scalpers to target as a short-sell option for quick $$$.

Internal PP currency which works on blockchain, is guaranteed by PP and kept away from mining/gov influence I would be all for it.

 

[cliffordcooley]

It would be a great tool for everybody if 'stablecoin' (name is kind of stupid because next more even stable coin will be rockhardcoin LOL) has fixed exchange rate to dollar.

At which point Bitcoin would loose its appeal.
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There is irony in everyone that stands behind Bitcoin and hates banks. It's not the currency they don't like. Its the 1% bracket they don't like. And they are so naive in thinking the 1% bracket will not adapt. Changing currencies will solve nothing.

 

[Eversong]

While mining crypto is scam, something created and guaranteed by PP - biggest e-payment system in the World still - this has some legs.

It would be a great tool for everybody if 'stablecoin' has fixed exchange rate to dollar. Then you can basically transfer money within PP network using blockchain as a carrier and not banks or other governmental institutions.

No it doesn't have any steady ground beneath its feet. I hope you realize why there are hundreds of digital coins atm: a) no insurance costs, no collateral and no responsobility, it's literally like trading bottled time with a sticker on it; b) as an owner of the platform you take a cut off of every transaction, in PoW and potentially PoS you _promise_ stakeholders to provide a cut as well in the endgame, but you don't actually have to deliver on that promise, literally the same concept as Overwatch League (hello, investors, I hope you're glad making zero revenue from ads and exposure, because the league is virtually dead, but you've paid 20mil in advance for the spot in it).

As for the second part - there're valid reasons for existance of those "governmental institutions," such as taxes that keep the bloody infrastructure in cities going, just good enough to maintain suitable for living conditions and order, and screening so the money from prostitution, drug cartels, digital piracy, etc won't end up bleached in this unmonitored financial sea.

Obfuscation and a trendy ad spin for the sake of getting X% more profit, faster and without attachments, is not a solution, it's a downhill road to financial collapse. Precisely because of it in real world behind banks and companies there's something else, like a sports team with millions of supporters, a stadium with thousands of visitors, perhaps a university or a fab with bright students/qualified workforce. In other words, there are PEOPLE with skills and knowledge involved, you can't destroy it overnight via a button press. What you'll be looking at is a large amount of venture capital poured from who-knows-where across the world, in hopes of trading something worse than thin air, which can be destoyed overnight.

 

[DukeJukem]

Yo dawg let's back an invisible thing with the most valuable visible thing. work every time.

 

[NightAntilli]

So... Visa and Master Card have adopted crypto... A bunch of banks are using Ripple/XRP. Samsung opened a store in the Decentraland Metaverse which is run by crypto, PayPal is bringing out its own stable coin... And people are STILL calling crypto a scam.

 

[Bl00dyMinded]

So... Visa and Master Card have adopted crypto... A bunch of banks are using Ripple/XRP. Samsung opened a store in the Decentraland Metaverse which is run by crypto, PayPal is bringing out its own stable coin... And people are STILL calling crypto a scam.

Yeah I just read everyone hating and laugh as well. I don't even bother changing someone's mind anymore. Within 10 years from now, lets see if they still call it a scam. Till then I just eat popcorn and read the comments.

Most people mad or hating have zero understanding of how Crypto works and it's intentions. And the rest are just hurt blaming crypto and mining for lack of GPUs lol. Because global shortage is controlled by miners. I guess shortage in cars is also miners fault since the chip shortage all went to GPUs apparently... And toilet paper too..

 

[tellmewhy]

The regular currency is stable not because it is backed by anything (it is not, only the central bank has this mechanism internally with certain metals), but because it is widely accepted.
So all they have to do is go to the Supreme Court and ask if it is legal not to pay taxes on transactions in virtual currencies. If someone buys a car with bitcoin, it is not a taxable event because the government does not accept bitcoin and of course it is not illegal if two people want to make an exchange. So if the court says that this is not a taxable event, then they should just use this decision and tell people not to be fools and pay VAT and income tax, but to use bitcoin or any other "vcoin" as much as more they can.
And of course the people if there is a decision of the supreme court they will adopt it because it is under pressure because they need the money that is wasted in taxes to pay their loans and interest. So if they can legally evade taxes and stay with more money, they will.