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posted by janrinok on Sunday January 09, @07:01PM   Printer-friendly
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, 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?

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  • (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.