Will PayPal issue its own currency?
It turns out that PayPal, a major US payment company, is considering issuing its own stable coins. CoinPost affiliated media, The Block, reported as a source.
PayPal has been meeting with stablecoin protocol developers in the crypto asset (cryptocurrency) industry, suggesting that it will work with third-party companies, according to four people familiar with the matter.
Also, Ava Labs and PayPal, which develop the Avalanche blockchain, talked about issuing stable coins. The names of companies other than Ava Labs have not been revealed.
When The Block asked PayPal about issuing stable coins, the person in charge commented as follows and avoided the content related to stable coins.
(PayPal) will continue to pursue the potential of digital currency and digital financial services infrastructure, and will consider how it can contribute to the improvement of digital commerce as a reliable partner in this field.
As a global company working with regulators and industry partners around the world to shape the next generation of financial systems, we frequently discuss technologies to achieve these goals.
However, rumors and speculation do not predict our future plans.
PayPal service expansion
In the past, there have been predictions about PayPal’s stable coin issuance.
In October 2020, Meltem Demirors, CSO of Coinshares, a major cryptocurrency investment company in the UK, interviewed CNBC’s investment program “Fast Money,” and PayPal said, “PayPal will be stable within 6 to 12 months. There is also the possibility of issuing coins. “
Demirors pointed out that PayPal was an early member of the Libra consortium, but withdrew in the fall of 2019.
He also said that the cryptocurrency services that PayPal launched in the fall of 2020 are already “an ecosystem within PayPal’s own platform”, so these could be a way for PayPal to issue its own currency. It was.
— CNBC’s Fast Money (@CNBCFastMoney) October 21, 2020
PayPal CEO Dan Schulman also talked about the concept of a system that “provides more value from basic transactions” such as “transactions that introduced smart contracts as well as virtual currency payments” at the Forbes event in April. Was there.
Although he was cautious about holding virtual currency as a corporate asset, he highly evaluated the merits and future potential of CBDC (Central Bank Digital Currency) from the perspective of financial inclusion.
Relation:PayPal CEO Suggests Expansion of Cryptocurrency Services | With Financial Comprehension in mind
Since Avalanche was named as a partner project candidate when issuing PayPal stable coins, the price of the original token “AVAX” increased by about 9% from the previous day.
Reference: The Block
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“Cryptocurrency” means “cryptographic assets”