When there is an incredible adoption and huge success of the cryptocurrency industry over these years. How can these big companies stay behind and leave their piece of cake? No one wants to lose this opportunity in this crypto revolution and everyone slowly putting their hands in it.
Soon we will get to see the most famous brands coming with their own tokens for the usage of their own services and the competition has been already started.
We know in Nov 2020 Payal allowed US citizens to hold the cryptocurrencies in their wallets. Slowly it started adopting crypto and started to buy sell and hold cryptos.
Cryptocurrencies like Bitcoin BTC, Bitcoin cash BCH, Ethereum ETH, and Litecoin were available on the platform and considering expanding more. Concentrating on security is only allowing good trusted and secure cryptos on the platform to avoid any rug pull and scams.
Recently Paypal had organized an internal hackathon on its own cryptocurrency division where a developer named Steve Moser had found a hidden code in the ios version of the app where it shows the name and the logo of the coin called "Paypal Coin".
Source: Bloomberg
Upon investigating the code the developer found it is backed by US Dollar and it is a stable coin that could be launched by Paypal.
After this news Vice President crypto and digital currencies at PayPal
Fernandez da Ponte Quoted
We are exploring a stablecoin and if and when we seek to move forward, we will of course, work closely with relevant regulator.
This confirms Paypal wanna launch their own stable coin or trying to launch still isn't sure.
Paypal Coin
Paypal Coin is a stable coin which means the value of 1 token of Paypal coin will be equal to 1$ which is a 1:1 ratio
To keep the value stable it will use US dollars as an asset to it. This is how most organizations use US dollars to back up their Stable Coins like USDT, USDC
Since It is backed by USD it cannot be said fully decentralized and it depends on the Fiat currency of the country.
Paypal is not a DAO - Decentralised Organisation which means they have to follow all the rules and regulations provided by the government to run any programs and even launch their own Crypto Currencies. That could be a disadvantage to both users and the company cause they have to obey any new laws applied.
Reason Behind Introducing Stable Coin
Paypal is trying to lay its hands in crypto. Which the massive users and wide network around the merchants it can quickly become one of the biggest cryptos platforms.
But when they will hold crypto, do transactions, and price something there is very much risk of crypto price volatility.
The Crypto market is very volatile and it causes a huge loss for the companies which hold too large assets.
By introducing Stable coins they may counter the risk of Volatility and maintain their overall financial stability. This allows them to do transactions safely.
Another benefit is by entering the crypto market, will help company to increase their adoption of tokens, and wide availability to users for transactions.
As it takes small transaction fees it gets the benefit and it will help the company financially.
Final Thoughts :
Still bring out Stable coin isn't fixed but. I think in the future they are definitely gonna launch their token. As they have to keep up with the completion. Many other companies will try to innovate and want to be a global leader. If PayPal launches I think it would perform well considering the number of users it has got already who use it. Also, it has integrated with so many shops and merchants the adoption will be so quick when they launch.
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