A stablecoin is a form of cryptocurrency that is backed by fiat currencies and is comparatively more steady than a decentralised token. It is a class of blockchain-based money that is pegged to physical assets such as reserve currencies, gold, and government bonds. Just like PayPal, Facebook (META) has crypto plans to launch its own digital wallet supporting its stablecoin – Diem, however, the step was pushed back by regulators and instead launched its wallet named Novi with a stablecoin called Pax Dollar. The PayPal coin has been working towards a wider presence in the cryptocurrency industry since its trading started in 2020 for all users. The Auto-trading platform step enables US customers to use cryptocurrency and increases the buying limit within a year.
PayPal expanding itself in the crypto industry
The concept of launching its stablecoin was raised when someone shared a “PayPal coin” logo with the media. The logo was featured on its iPhone app as exploratory testing of tokens. PayPal offers retail customers an opportunity to sell and buy cryptocurrencies such as Bitcoin, ethereum, litecoin, and bitcoin cash. The company also offers crypto solutions for businesses. According to website data, about 30 million merchants have their businesses linked with PayPal. These merchants use their respective accounts to allow customer payment in a digital manner. Along with this, loans, automated bookkeeping, and generating invoices are some other services offered by PayPal to its users.
HOW CAN PayPal COIN REGULARISE CRYPTO PAYMENTS
Users in the financial sector majorly steer clear of the volatility in the crypto market and cohort only with outside users of the space. Rather than a crypto-native organisation working in the industry for a long time, a change and update by conventional finance firms into the crypto world authenticates the need to dig deeper into the crypto
PayPal currently has more than 350 million active customers and the company has already started crypto functioning in the UK and the USA. This enables more and more users to transact and hold cryptocurrencies and tokens. Paypal is currently limited to cryptocurrencies such as – Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and bitcoin cash (BCH). With Paypal stablecoins, one can take advantage of the volatility associated with decentralised finance and other blockchain-based applications and spaces.
HOW DOES STABLECOINS BENEFIT PAYPAL?
As said by the editor in chief of Investopedia, Caleb silver mentioned the rise of PayPal and that it has incurred $2.7 billion in the transaction and related expenses alone in a short period of time. Paypal has the potential to establish itself well and earns big money through transaction-related costs. However, the improvement of the coin is still in process and is going to offer some of the best crypto-related transactional services with easy accessibility. With the linkage of blockchain technology efficiencies and their previous business model, the coin can provide small businesses with a digital presence in the global industry, as stated by the president of digital asset investment company Arca, Jerald David.
Though the clear idea of PayPal stablecoin being launched and providing solutions to transactional issues is still not achieved, it is true that the firm is placed in the position to incorporate blockchain technologies into modern payment modes.
IS PAYPAL COIN WORTH THE INVESTMENT?
Based on the recent data and current status, Paypal coin is a little too early to invest in. The firm is considered as the second most trustable firm globally beating all other payment providers such as MasterCard and Visa. With a payment processing infrastructure, the firm provides global scale, business solutions to both small and large scale industries. Investors are advised to take a little bit of time and study before investing in Paypal coins. However, when asked, PayPal refused to address its availability on centralised exchanges like coinbase, Gemini and Kraken.
SUMMARY:
Paypal stablecoin has undergone and will continue to update itself through technological advancement. The step aims to provide transaction services with better efficiency and solutions for big and small scale industries. PayPal in recent years has established itself well in the global market and potential enough to step up in the crypto industry. By launching its own stablecoin, PayPal is aiming to expand itself by utilising blockchain technology and providing efficiency to its users.