PayPal is creating its own cryptocurrency

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The electronic payments platform PayPal has confirmed that it is working on the development of its own cryptocurrencyin this case within the type called stablecoin.

PayPal’s cryptocurrency will have a stable quote, linked to the value of the US dollar

A stablecoin is a type of cryptocurrency whose quotation is not open to the free market for buying and selling digital assets but rather links its value to a legal tender, with which it keeps its value paired.

In this case PayPal pegs its stablecoin to the US dollar. In this way, the decentralized nature that usually characterizes cryptocurrencies is somewhat lost, but on the other hand, stability is gained in the quotation of these currencies, which also removes them from the volatility and fluctuation of their value that is an inherent part of these digital assets.

José Fernández da Ponte, vice president of Cryptocurrencies and Electronic Currencies at PayPal, has confirmed that the company is working on this issue by maintaining contacts with relevant market regulators as it explores the situation and assesses the moment to take the plunge and present its own cryptocurrency.

PayPal already opened its platform to payments and transactions with cryptocurrencies in 2020, also allowing from September last year that from the app itself can manage different operations with virtual currencies, but its next step would be directed to have its own, of which some details are already known, the result of images and code to which developer Steve Moser has accessed.

Under the name PayPal Cointhe stablecoin would be identified by the addition to the company’s logo of two horizontal lines that cross the double P, in the style of what happens with the representations of currencies such as the pound sterling, the yen or the euro.

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