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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.
(Score: 2) by Thexalon on Monday January 10 2022, @02:06PM (2 children)
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.
The only thing that stops a bad guy with a compiler is a good guy with a compiler.
(Score: 2) by JoeMerchant on Monday January 10 2022, @04:01PM
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.
🌻🌻 [google.com]
(Score: -1, Flamebait) by Anonymous Coward on Monday January 10 2022, @08:14PM
"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.