PayPal Confirms It’s Working on Its Own Stablecoin After Developer Finds Code in iOS App: Report

PayPal, the popular multinational financial technology company has reportedly indicated its interest in “exploring” the prospect of launching its very own stablecoin, which is a cryptocurrency pegged to the value of fiat or a reserve asset like gold, silver, etc. The indication arrived after developer Steve Moser discovered references to something called “PayPal Coin” within the company’s iOS app, which also featured PayPal’s logo in it. Stablecoins have grown in popularity for making transfers between exchanges and crypto use in day-to-day commerce, simpler.

Following Moser’s findings, Bloomberg said in a report that PayPal senior vice president of crypto and digital currencies Jose Fernandez da Ponte has confirmed the findings.

“We are exploring a stablecoin,” Bloomberg quoted Fernandez da Ponte as saying. “If and when we seek to move forward, we will of course, work closely with relevant regulators.” But a company spokesperson also said the code Moser found resulted from a hackathon, so it’s not considered final.

PayPal began facilitating the purchase of select cryptocurrencies in late 2020, and in early 2021 added a “Checkout with Crypto” feature to let users buy things with their digital assets.

The company’s existing support for cryptocurrencies is limited to Bitcoin, Bitcoin Cash, Litecoin, and Ether. However, Moser says that PayPal’s app also revealed that it’s working to support the Neo cryptocurrency, in addition to exploring the possibility of introducing its own stablecoin.

During an earnings call last year, the digital payments provider also outlined plans for a dedicated business unit for PayPal’s crypto ambitions which included working alongside regulators outside the US market to accept new forms of digital currencies.

PayPal says it has over 375 million daily active users and 30 million merchants on the platform. While the company does not charge any fee for holding cryptocurrency, it does charge users for transactions and currency conversions.