PayPal is reportedly considering launching its own US dollar-backed cryptocurrency as the venerable online payments company continues to integrate ways of interacting with digital currencies on its platforms.
The company is only exploring the idea of launching its own stablecoin, a cryptocurrency backed and pegged in value to an existing coin, PayPal confirmed to Bloomberg. Developer Steve Moser searched the PayPal app and discovered evidence that the company was playing with a cryptocurrency called “PayPal Coin” backed by the US dollar.
Moser also found references to another cryptocurrency, Neo, in PayPal’s iOS app, he noted on his site, The Tape Drive. PayPal currently supports the purchase, sale, and holding of cryptocurrencies Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
PayPal began allowing its US customers to have cryptocurrencies in October 2020, then allowed them to make purchases with supported cryptocurrencies from the platform’s 29 million merchants the following March. PayPal does not charge fees for holding cryptocurrencies, but it does charge a small transaction fee equal to or less than 2.3%. The advantage of using PayPal for cryptocurrency purchases is the protection against fraud that extends to purchases, as well as those made with fiat currency on the platform.
It’s unclear how much PayPal has developed its stablecoin, although evidence from the code, including a PayPal Coin logo found on the app, was the result of an internal hackathon, a company spokesperson confirmed to Bloomberg. Presumably, the name and details could change if PayPal moves forward with its cryptocurrency.
PayPal did not immediately respond to a request for comment.