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posted by janrinok on Sunday January 09, @07:01PM   Printer-friendly [Skip to comment(s)]
from the stable-coin-might-exit-the-barn dept.

PayPal confirms it's exploring the launch of its own stablecoin:

PayPal has been expanding its cryptocurrency business since it opened trading to all users in 2020. It allowed US customers to check out with cryptocurrency and increased its crypto buy limit over the past year. In the future, it might also offer a stablecoin of its own. Jose Fernandez da Ponte, SVP of crypto and digital currencies at PayPal, has confirmed to Bloomberg that the online payment provider is "exploring a stablecoin." He also said that the company will work closely with relevant regulators "if and when [it] seek[s] to move forward."

A developer named Steve Moser found hidden code and images for a "PayPal Coin" in the company's app and shared them with Bloomberg. Based on what he discovered, the PayPal Coin will be backed by the US dollar.


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  • (Score: 1, Touché) by Anonymous Coward on Sunday January 09, @07:45PM (3 children)

    by Anonymous Coward on Sunday January 09, @07:45PM (#1211301)

    ...in a rich man's world.

    We need more Crypto stories and for God's sake, please post more NFT and blockchain stories too.
    The sooner we all convert, the better right?
    Disclaimer:
    I have some Unicorn farts to sell.

    • (Score: 1, Funny) by Anonymous Coward on Sunday January 09, @09:38PM (2 children)

      by Anonymous Coward on Sunday January 09, @09:38PM (#1211320)
      • (Score: 2) by istartedi on Monday January 10, @12:04AM (1 child)

        by istartedi (123) on Monday January 10, @12:04AM (#1211355) Journal

        So. Running a machine (in this case, the human body) outside of normal parameters in order to maximize short term profit causes problems. Whodathunkit?

        • (Score: 0) by Anonymous Coward on Monday January 10, @04:29AM

          by Anonymous Coward on Monday January 10, @04:29AM (#1211411)

          I didn't click to read it, but I've been seeing on my Twitter trending and suggestions that this woman was now going to sell NFTs for her farts.

  • (Score: 3, Touché) by Mojibake Tengu on Sunday January 09, @07:54PM (2 children)

    by Mojibake Tengu (8598) Subscriber Badge on Sunday January 09, @07:54PM (#1211302) Journal

    Reminder: Corporations may legally bankrupt.

    --
    The edge of 太玄 cannot be defined, for it is beyond every aspect of design
    • (Score: 0) by Anonymous Coward on Sunday January 09, @08:32PM (1 child)

      by Anonymous Coward on Sunday January 09, @08:32PM (#1211310)

      But can't let the peon's do the same! Seriously, time to roll back corporate giveaways.

      • (Score: 2) by JoeMerchant on Monday January 10, @01:37PM

        by JoeMerchant (3937) on Monday January 10, @01:37PM (#1211483)

        Actually, people can also bankrupt, but people have to live with the consequences for 7+ years whereas Corporations simply dissolve (and the principals often go reform a new corporation to do the same thing even before the bankrupt one is gone.)

        --
        Україна не входить до складу Росії.
  • (Score: 3, Touché) by progo on Sunday January 09, @08:50PM (3 children)

    by progo (6356) on Sunday January 09, @08:50PM (#1211313) Homepage

    Based on what he discovered, the PayPal Coin will be backed by the US dollar.

    Most of the US dollars that exist were commanded into existence in the last 2 years. I don't think the word "stable" is appropriate, here.

    • (Score: 0) by Anonymous Coward on Sunday January 09, @09:56PM

      by Anonymous Coward on Sunday January 09, @09:56PM (#1211326)

      I think by stable they mean blockchain without any of the compelling reasons for using a cryptocurrency.

    • (Score: 2) by Unixnut on Monday January 10, @10:30AM (1 child)

      by Unixnut (5779) on Monday January 10, @10:30AM (#1211466)

      > Most of the US dollars that exist were commanded into existence in the last 2 years. I don't think the word "stable" is appropriate, here.

      To be fair, a currently that has been losing value consistently over many decades can be considered "stable", in the sense that it is a stable rate of devaluation. As such all fiat currencies are stable in that sense, you can pretty much guarantee they will be worth less as each day passes.

      • (Score: 2) by JoeMerchant on Monday January 10, @04:06PM

        by JoeMerchant (3937) on Monday January 10, @04:06PM (#1211515)

        If you look at the inflation adjusted value of the US dollar since 1970, it has actually been very impressively managed for a near constant 2% per year rate of overall inflation. We will have to look back around 2025 or 2030 to see if the current situation is a temporary blip or a full on deviation from the 50 year stable trend.

        --
        Україна не входить до складу Росії.
  • (Score: -1, Troll) by Anonymous Coward on Sunday January 09, @09:30PM (5 children)

    by Anonymous Coward on Sunday January 09, @09:30PM (#1211318)

    PayPal should be ashamed of providing material support to the Muslim jihadis trying to overthrow America.

    • (Score: 0) by Anonymous Coward on Sunday January 09, @09:41PM (1 child)

      by Anonymous Coward on Sunday January 09, @09:41PM (#1211321)

      Muslim jihadis are busy in Afghanistan, England, France, Sweden, etc. They don't have time to overthrow America.

      • (Score: 0) by Anonymous Coward on Monday January 10, @08:10PM

        by Anonymous Coward on Monday January 10, @08:10PM (#1211589)

        also, ZOG brand America is the money raising center for the jew puppet jihadis.

    • (Score: -1, Troll) by Anonymous Coward on Sunday January 09, @09:44PM (2 children)

      by Anonymous Coward on Sunday January 09, @09:44PM (#1211324)

      As opposed to the Jewish jihadis?

      • (Score: 2, Informative) by Anonymous Coward on Sunday January 09, @10:19PM (1 child)

        by Anonymous Coward on Sunday January 09, @10:19PM (#1211327)

        That's absurd.

        We have a fascist movement right here right now today that wants to enshrine Protestantism, or some twisted version thereof, as the state religion in the USA. My grandmother's Christian Reformed faith was downright reasonable compared to some of this nonsense, especially some of the more absurd like Christian Identity that radicalize decent people and turn them into Q-conspiring Christian mullahs. Watching large numbers of people begin believing this shit has convinced me that there may or may not be some kind of cosmic superbeing or enlightened state of superbeing, but there is certainly a devil, and an increasing number of her servants claim to be Christians.

        • (Score: 0) by Anonymous Coward on Tuesday January 11, @01:01AM

          by Anonymous Coward on Tuesday January 11, @01:01AM (#1211662)

          It's always the ones yelling loudest about "freedom" that want everyone to do what they say.

  • (Score: 1, Redundant) by corey on Sunday January 09, @10:23PM (5 children)

    by corey (2202) Subscriber Badge on Sunday January 09, @10:23PM (#1211329)

    We need more crypto currencies? Isn’t there like dozens already?

    • (Score: 2) by Thexalon on Sunday January 09, @11:52PM (4 children)

      by Thexalon (636) on Sunday January 09, @11:52PM (#1211350)

      There are lots of crypto currencies out there, but since it's far more profitable to start or get in really early with a well-hyped crypto than to try to mine the last available Bitcoin, it's no surprise that PayPal would want to start their own.

      --
      Alcohol makes the world go round ... and round and round.
      • (Score: 2) by JoeMerchant on Monday January 10, @01:40PM (3 children)

        by JoeMerchant (3937) on Monday January 10, @01:40PM (#1211485)

        Stablecoin isn't supposed to be a miner's pyramid scheme. It's all kinds of other schemes that are likely to attract regulation some day, but the value of a stablecoin is supposed to be... Stable. Not inflating.

        --
        Україна не входить до складу Росії.
        • (Score: 2) by Thexalon on Monday January 10, @02:06PM (2 children)

          by Thexalon (636) on Monday January 10, @02:06PM (#1211488)

          And that won't work, for the same reason the gold standard didn't work all that well: The business cycle means that the value of money isn't a constant. Central banks have their flaws, but they've also solved major problems: e.g. during 2008-2015 or so it was the Fed, not Congress and definitely not the president at the time, who really allowed the economy to recover.

          --
          Alcohol makes the world go round ... and round and round.
          • (Score: 2) by JoeMerchant on Monday January 10, @04:01PM

            by JoeMerchant (3937) on Monday January 10, @04:01PM (#1211513)

            Well, I can see it working if it's based on a flexible fiat currency like the USD. Then operating a stable coin is a matter of retaining sufficient reserves. If I were in charge of the regulations, I'd require 100% reserves for the float with at least weekly independent audits for something as big as PayPalCoin is likely to become. We're talking 52 separate independent auditing firms that have to each be convinced once a year that the Coin is properly backed by liquid deposits available for immediate redemption on demand.

            Sure, that deflates much of the monetary benefit of operating a crypto-coin, but I also feel that the crypto mechanism itself has sufficient benefits that it is still worthwhile to operate a 100% reserve backed Coin.

            --
            Україна не входить до складу Росії.
          • (Score: -1, Flamebait) by Anonymous Coward on Monday January 10, @08:14PM

            by Anonymous Coward on Monday January 10, @08:14PM (#1211591)

            "Central banks have their flaws"

            Understatement of the year. Bleeding countries dry, while writing their laws, is a little more than "having flaws". What a slave.

  • (Score: 5, Insightful) by Rosco P. Coltrane on Sunday January 09, @10:38PM (1 child)

    by Rosco P. Coltrane (4757) on Sunday January 09, @10:38PM (#1211334)

    The entire point of cryptocurrency is to do away with middlemen like Paypal. Duh...

    This Paypalcoin is just another "we have our own coin too" thing. I'll just keep using real currencies thank you very much.

    • (Score: 1) by shrewdsheep on Monday January 10, @10:20AM

      by shrewdsheep (5215) on Monday January 10, @10:20AM (#1211464)

      I don't know any details of course, but as I see it Paypal wouldn't be a middleman. If it is a blockchain, you can use it without paypal (unless paypal restricts the mining privilege to itself). Only would paypal serve as an exchange with a garuanteed exchange rate. There can be other exchanges apart from paypal.

  • (Score: 4, Insightful) by Anonymous Coward on Monday January 10, @12:00AM (3 children)

    by Anonymous Coward on Monday January 10, @12:00AM (#1211354)

    IIRC, way way back the government had an opportunity to decide if PayPal and other online payment services should be regulated like banks and they decided not to do it.

    I'm thinking this means that PayPal's "stable" coin won't be required to have the kinds of reserves that banks do. That means that just like in days of old, a "run" on it could bankrupt the coin, or if they're really stupid and don't hold enough reserves and compartmentalize it, it could bankrupt PayPal.

    This is a recurring theme in the libertarian and crypto world--the drive to eliminate the cruft accumulated by government experience in the field leads to a re-creation of the cruft, but in a less robust way. This was played to comedic affect on The Simpsons, and it was funny because it's true.

    • (Score: 0) by Anonymous Coward on Monday January 10, @02:41AM (1 child)

      by Anonymous Coward on Monday January 10, @02:41AM (#1211387)

      As I've posted here before, I don't think bankers (as a group) are all that smart. Thus the need for regulation to prevent the bankers from engaging in risky behavior with their customers money (deposits), and other sorts of bad behavior. The temptation to engage in this risky behavior is clear--big bonuses when a gamble works out. And whining "too big to fail" when a deal goes south.

      While PayPal and other payment processors aren't regulated like a bank, I wonder if they are any smarter (as a group) than bankers...?

      • (Score: 3, Insightful) by mhajicek on Monday January 10, @07:46AM

        by mhajicek (51) on Monday January 10, @07:46AM (#1211455)

        Smart or not isn't the issue. They'll happily risk other people's money and wellbeing so long as they get theirs. This often means individuals will make decisions that are not in their company's best interest.

        --
        The spacelike surfaces of time foliations can have a cusp at the surface of discontinuity. - P. Hajicek
    • (Score: 2) by JoeMerchant on Monday January 10, @01:42PM

      by JoeMerchant (3937) on Monday January 10, @01:42PM (#1211486)

      Bankruptcy is a big win, for the debtors.

      --
      Україна не входить до складу Росії.
  • (Score: 2) by ElizabethGreene on Monday January 10, @03:04PM

    by ElizabethGreene (6748) on Monday January 10, @03:04PM (#1211494)

    My experience with PayPal's customer service imeans I wouldn't trust them (or their Stablecoin) if they gave it to me wrapped in a bow. Paypal has a sketchiness factor that ranks right there with Comcast, Wells Fargo, and Uber.

  • (Score: 0) by Anonymous Coward on Monday January 10, @08:07PM

    by Anonymous Coward on Monday January 10, @08:07PM (#1211588)

    "He also said that the company will work closely with relevant regulators "if and when [it] seek[s] to move forward.""

    yeah, we know you will, you fucking whore-ass piece of shit.

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