News: Developer Discovers PayPal Coin Code in PayPal App
PayPal is reportedly working on its own cryptocurrency. Here’s what to expect.
Contributing Writer at Tally
February 4, 2022
Cryptocurrency has been a part of PayPal for some time now. The online payment company has allowed digital currency use in some form on its platform since 2014. But the online payment giant has recently become more and more tied to digital currency, allowing users to buy and hold crypto.
Now, new reports indicate it’s all in on cryptocurrency and will soon launch its stablecoin, PayPal Coin. The reports stem from developer Steve Moser, who discovered hidden code and images in the PayPal app that included references to a PayPal Coin.
Jose Fernandez da Ponte, Senior Vice President of crypto and digital currencies at PayPal, later confirmed the report. He told Bloomberg News, “We are exploring a stablecoin; if and when we seek to move forward, we will of course work closely with relevant regulators.”
Here’s what to expect from this reported all-new digital currency.
What is a stablecoin?
First, what is a stable coin? A stablecoin is a cryptocurrency, but unlike Bitcoin, which has a value determined simply by demand, a stablecoin attaches its value to something tangible to offer some price stability.
In the case of the Paypal Coin, the coding behind it indicates it’ll attach itself to the U.S. dollar. However, PayPal was quick to note this code was discovered from a hackathon, an event where developers create all types of projects, many of which will never make it to the public. So, PayPal Coin could be dramatically different than what was in the code, or it could never go public.
However, given PayPal’s recent acceptance of crypto, the signs point toward it being a distinct possibility.
How does the PayPal Coin impact PayPal users?
As of now, there’s no impact to users, as the PayPal Coin is still just a figment of a developer’s imagination. However, this coin could give users more flexibility in payments in the future, something that’s been lacking in the stablecoin world for some time now.
With PayPal’s security protocols and trust as a top payment provider, this can bring a lot of legitimacy to digital currency as a payment method.
However, before PayPal can fully dive into this maze of digital money, it’ll have serious regulatory hurdles to clear. However, as a leader in the digital payment space, regulatory hurdles have been routine obstacles for PayPal.
How PayPal Coin may integrate into the current system
Again, there are limited details on the plans for PayPal Coin. However, it’s not too difficult to see how it could integrate into PayPal’s existing framework.
PayPal already has firm footing in the digital payment space, so PayPal Coin could integrate into the existing framework after clearing regulatory issues. And with it apparently tied to the value of the U.S. dollar, there’d be little it needs to do to garner trust with users.
The assumption would be users can choose to hold their PayPal account in U.S. dollars, as they do today, or PayPal Coin. The exact benefit of holding PayPal Coin remains unclear at this point. Still, the payment goliath will likely offer some incentive, whether its potential growth or bonuses for using the digital currency.
Nothing official yet, but stay tuned
Other than the admission that PayPal is working on its crypto, there is nothing official about its rollout. But stay tuned for future announcements.