The American payment system PayPal will launch its own stable cryptocurrency. How this digital currency works and how the information was leaked.
PayPal launches its own cryptocurrency: why it would be better than the dollar
Updated on 01/10/2022 16:36
In 2020, PayPal joined the cryptocurrency market, allowing its customers to buy, sell, and hold bitcoin and other virtual currencies using the US digital payments company’s wallets.
This year, the company announced that it will continue to expand its crypto business on a global scale and brought forward the launch of its own stablecoin.
What is a stable cryptocurrency? In Argentine jargon, these digital currencies are known as “cryptodollars”, since they maintain parity with the US dollar and always have a value of US$1.
¨PayPal will launch its own stable cryptocurrency backed by the US dollar. It will always have a value of US$ 1.
Investors use “stablecoins” as a barrier to entry to the crypto market and then exchange them for other volatile cryptocurrencies; and they also keep them in the long term because they are a way to save in dollars without stocks or limits.
In dialogue with Bloomberg, José Fernández da Ponte, senior vice president of cryptocurrencies and digital currencies at PayPal, revealed that the firm is “exploring” the launch of its own stable digital currency.
Furthermore, he noted that they are working with central banks and thinking about how PayPal can play a role in the world of cryptocurrencies.
“We will work in collaboration with the regulatory entities as long as they want to move forward,” Fernández da Ponte stressed.
HOW WAS PAYPAL CRYPTOCURRENCY LEAKED?
These statements came after a developer named Steve Moser read PayPal’s code and found remnants of the company’s own stablecoin.
In simple terms, PayPal is a platform that works thanks to lines of code created by its developers. In those lines of code, Moser discovered that they were already working on a new technology “branch” in his code to support a US dollar-backed stablecoin.
In addition, he found images and a new PayPal logo indexed in the code.
New PayPal logo?
Following these discoveries, a spokesperson for the company said that what Moser detected was just “leftovers” of code that had been left over from an internal competition of PayPal’s blockchain programmers.
In just three days, Fernández da Ponte officially confirmed the intention of the American company and more news is expected in the medium term.