For a few months now, US customers have been able to pay with cryptocurrencies via PayPal. According to rumors, the payment giant is now to retrofit a stablecoin connection.
Although stablecoins are predestined for payment processing, PayPal’s Crypto Checkout is still based on Bitcoin, Litecoin, Ethereum and Bitcoin Cash. However, the payment giant may have deliberately kept the space for a stablecoin open. How The block citing anonymous sources reported, a stablecoin of its own could fill the void in the future.
PayPal is silent
Across from The block The unnamed sources are said to have confirmed that PayPal was in talks with developers of stablecoin protocols. Ava Labs, which is behind the Avalanche Blockchain, an interoperable network for decentralized applications, is named as a possible candidate. It is unclear at this point in time which other developers are being discussed.
It is also unclear whether PayPal would like to use an existing stablecoin or develop its own. PayPal itself has been keeping a low profile on this so far. A speaker should The block stated that the company “continues to explore the potential of digital currencies and digital financial services infrastructure”. One does not want to comment on speculations. But “as a global company that works with regulators and industry partners around the world,” PayPal would be “talking about technologies that enable these goals.”
The missing piece of the puzzle
This leaves a lot open. Until the official launch, there will probably not be any more precise information from official circles. However, given the company’s previous crypto strategy, the announcement would come as no surprise. PayPal has expanded into the crypto terrain more and more in the last few months.
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On the one hand, this includes the expansion of services. Since last fall, the financial services provider has enabled US users to buy and sell crypto currencies – now also via the app from PayPal subsidiary Venmo. In addition, the company set up a crypto checkout at the end of March: since then, goods can also be paid for with Bitcoin, Litecoin, Ethereum and Bitcoin Cash.
To this end, PayPal continues to network as a central hub in the payment industry. Just recently, the company swallowed Curv, a provider of cloud-based infrastructure for digital assets. The payment giant is said to have cost the deal $ 200 million. In addition, PayPal has also been connected to the US crypto exchange Coinbase for a few days.
The payment service provider is becoming an increasingly important part of the digital payment infrastructure – just like stablecoins. The connection would be a logical step and would close an important gap in the market. With regard to the steps taken by Facebook, which is still in its infancy with its currency renamed by Libra to Diem, it is questionable whether PayPal could rely on the development of its own stablecoin or rather use existing coins such as Tether. Both PayPal and Ava Labs did not respond to inquiries at the time of going to press.
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