Is PayPal plannning to Launch of Own Stablecoin?

[m2017]

Possible logo option PayPal Coin.

Here are Jose Fernandez da Ponte's (SVP, Blockchain, Crypto and Digital Currencies at PayPal) words:
“We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators”

Source link: https://www.bloomberg.com/news/articles/2022-01-07/paypal-is-exploring-launch-of-own-stablecoin-in-crypto-push

PayPal Coin is expected to be backed by $ Dollar U.S.

I see both positive (+) and negative (-) aspects of this news.

(+) Financial companies are feeling the wind of change and are trying to keep up with new technologies and new opportunities to increase their profits. Can say that this is in some kind of one of the stages of the masses of the adoption of crypto. Does the crypto community want cryptocurrencies to supplant traditional banks? Here is one of the stages to the formation of this.

(-) Did you really think that the traditional banking and financial system would simply wither away from the mass adoption of crypto? Of course not. Those organizations that will not be able to adapt to new conditions will die.

(+) This news, in its own way, attracts the attention of ordinary people to the topic of crypto. Moreover, PayPal has a huge user base, which allows them to be interested in crypto. 

(-) The disadvantage in this, I see, is that the new PayPal Coin will be centralized and, of course, the problem of mandatory verification. And of course, PayPal Coin will be very far from the ideology of Bitcoin.

How do you rate the event with this company's plans to launch its stablecoin?

[jackg]

I don't know if I'd take these ideas seriously, especially from PayPal.

Assuming it's still owned by eBay, its probably just trying to get some demand on ebay stocks (since they just seem to fall relative to their profits).

Also, I don't know if anyone uses PayPal for any other reason than it being useful for not putting in card details when paying for stuff, if you instead have to bother to sign a transaction or do something fancier then why would anyone bother?

All this being said, a centralised organisation controlling a cryptocurrency might make it more forgiving from scams and accidental mistakes (eg sending to addresses spelt wrong).

[Charles-Tim]

I read this like a day ago, I just glanced through it on Cointelegraph. Why would PayPal want to create their own stable coin when the coins they are supporting now like bitcoin can not be transferred (received or sent), PayPal users can only buy or sell but can not send and receive. PayPal can change this later but I am wondering if they do not change, how would it be different from fiat? Also, PayPal is a company that can not be trusted about cryptocurrencies as they bring up confusions that can mislead people about what cryptocurrencies are, they are even worse than centralized wallets when it comes to cryptocurrencies. I can never use PayPal for anything related to cryptocurrencies.

Does the crypto community want cryptocurrencies to supplant traditional banks? Here is one of the stages to the formation of this.

PayPal will do it in a way to be centralized and relate to or support fiat.

Did you really think that the traditional banking and financial system would simply wither away from the mass adoption of crypto?

PayPal will think of all these before starting or they will face new rules and regulation from the US government. Just know that PayPal main goal is fiat and central control.

This news, in its own way, attracts the attention of ordinary people to the topic of crypto. Moreover, PayPal has a huge user base, which allows them to be interested in crypto.

Yes. People that are using PayPal.

The disadvantage in this, I see, is that the new PayPal Coin will be centralized and, of course, the problem of mandatory verification. And of course, PayPal Coin will be very far from the ideology of Bitcoin.

It will be more than centralized and operate with fiat.

[mk4]

I'm pretty sure exploring != planning.

The former likely means that they're still trying to find out if it's worth doing or if it's feasible; while the latter likely means that they're probably already decided. Also taking note that these huge companies frequently "explore" stuff that they can implement to their company; without any guarantees in the end that they will push through.

Good job by the media by creating a "pAyPaL cOiN" to get clicks and shares from the normies though.

[cabron]

Few Paypal users over the years. Paypal is a declining payment method already and to be able to stay in the competition, creating a stablecoin is just another attempt to make its customers stay on their platform. It's of course centralized. Seeing where they could go with this kind of plan which in the later years we'd be seeing a Paypal exchange where this Paypal coin will only be traded in the market having BTC/PAYPALCOIN.

[sunsilk]

Few Paypal users over the years.

I wouldn't say few, there's still a lot of their users. They've got an estimate of 390 million users worldwide and that's ain't few.

I'll compare this possible launching of their own stable coin to Facebook's Libra that has failed. They're both planned but not executed so let's see if PayPal will just remain on their planning stage and might end up the same as Libra's.

[oHnK]

The disadvantage in this, I see, is that the new PayPal Coin will be centralized and, of course, the problem of mandatory verification. And of course, PayPal Coin will be very far from the ideology of Bitcoin.

When Paypal creates its own coin it is commonplace in business but if it is forced to be centralized then the demand is also limited to those who are fiat lovers.  The CEO of Binance said that it would be very appreciated if the CBDC came along with crypto but it would be a shame if it was created to limit the space for crypto in the market.  Paypal, however, is a staunch supporter of Fiat, so it's hard to trust a company with a different orientation.

[DaveF]

For something like PayPal that has users across the world it might actually be good for the users depending on how it's implemented.

As of now if I a US user send money through PP to someone in another county there is an exchange fee from USD to whatever.
If they are using a satblecoin there would probably be no fee, *if* they do what they said with BTC and have no fee user to user transfers.
So instead of going fiat to fiat with a fee. Or BTC to BTC with no frr (but with BTC price fluctuation) people would be able to do stablecoin to stablecoin.

No why they don't use an existing one I have no idea.

-Dave

[LeGaulois]

-

Perhaps because it could become a controversial situation. Look for example at the controversy about tether. Or it could be because none of them are a state currency and there may be something in the laws that prevents them (I don't know the US laws).
There is also another possibility: from a company point of view, it may be better to have full control over something you integrate into your company, rather than using an external party.

Just my 2 cents.

We usually say Not your keys, not your coins. Paypal could say Not your stablecoin, not your company.
Honestly, in their shoes, I would do the same.

As for the rumor, Paypal already talked about a possible Paypalcoin, at the time they added BTC months ago. They were saying more or less the same thing "we're exploring"

[Tumanggor]

Few Paypal users over the years.

I wouldn't say few, there's still a lot of their users. They've got an estimate of 390 million users worldwide and that's ain't few.

I'll compare this possible launching of their own stable coin to Facebook's Libra that has failed. They're both planned but not executed so let's see if PayPal will just remain on their planning stage and might end up the same as Libra's.

that's very true, paypal users continue to grow even though currently transaction activity on paypal is decreasing because of the many competitors

I agree with @mk14 opinion, paypal is just trying to explore what happens if they execute their plan above, will many support!

the possibility that paypal coin will become "the next failed libra" is also very large

[avikz]

Paypal will have to find alternative ways to stay afloat. Cryptocurrencies can entirely remove the need for having a remittance provider or payment processor. So sooner or later, they will have to find more ways to generate revenue. Their crypto adoption was one of their survival strategies.

So I won't be surprised if Paypal will actually launch a stablecoin. That will make their remittance business work like a dream at fraction of the current remittance cost. It's the same idea on what Ripple is based. So you can expect them to launch a stablecoin in near future.

[Leviathan.007]

Saw that's on the news and I'm smiling while reading news like this about bitcoin and PayPal because I remember PayPal was spreading bad and negative news about bitcoin and they believed that bitcoin won't and can't grow too much, while months ago they change their mind clearly and started to do accept cryptocurrencies now they even want to create their own stable coin, however,  I'm not sure if people will really like use this stable coin because very much centralized and will need many regulations for sure.

[carlfebz2]

Saw that's on the news and I'm smiling while reading news like this about bitcoin and PayPal because I remember PayPal was spreading bad and negative news about bitcoin and they believed that bitcoin won't and can't grow too much, while months ago they change their mind clearly and started to do accept cryptocurrencies now they even want to create their own stable coin, however,  I'm not sure if people will really like use this stable coin because very much centralized and will need many regulations for sure.

Paypal is regulated and heavily centralized platform then you would really expect that each things that they would tend to create below will surely be abiding with those regulations so its not really that surprising that

possible coin that they would make would be centralized one and you could really able to tell out on just using your own common sense.People would adapt? For old paypal users then they might really consider it out

whether out of curiosity or would really be taking it as an another option but for those whose aware about crypto and stable coins then this isnt something an interesting news for them.

[arallmuus]

I'm pretty sure exploring != planning.

The former likely means that they're still trying to find out if it's worth doing or if it's feasible; while the latter likely means that they're probably already decided. Also taking note that these huge companies frequently "explore" stuff that they can implement to their company; without any guarantees in the end that they will push through.

This is written in the article

PayPal Holdings Inc. is exploring the launch of its own stablecoin as part of its cryptocurrency push, according to the company, which confirmed the development after evidence of the move was discovered inside its iPhone app.

The bolded part indicate that they are now in development stage already so they probably have noticed the potential of launching their own stablecoins and is now currently trying to develop if it is possible but yeah its still pretty early to know wether they'll pull through this or not because they can just completely stop and throw the idea away

[stompix]

Few Paypal users over the years. Paypal is a declining payment method already and to be able to stay in the competition,.

From the Q4 2020 report:

• Total Payment Volume (TPV) of $277 billion, growing 39%, and 36% on an FX-neutral basis (FXN); revenue of $6.12
billion, growing 23% on a spot and FXN basis
• GAAP EPS of $1.32, up 208% and non-GAAP EPS of $1.08, up 29%
• Added 16.0 million Net New Active Accounts (NNAs)
FY’20: Strongest performance in PayPal’s history
• TPV of $936 billion, growing 31% on a spot and FXN basis; revenue of $21.45 billion, growing 21%, and 22% FXN
• GAAP EPS of $3.54, up 71% and non-GAAP EPS of $3.88, up 31%
• ~$5.9 billion in Operating Cash Flow and ~$5.0 billion in Free Cash Flow
• Added 72.7 million NNAs

Paypal is dying almost as much as Bitcoin  

As for their stable coin, is going to be a totally centralized coin where on top of all the problems that comes with now you're going to have to trust Paypal with the funds that guarantee the value, might be better than tether as it's obviously not going to be that shady but not an award-winning in either. Plus I'm fairly sure they will not allow exchanges that are not licensed in the US to use it, it will simply mean too much trouble for far too little.

[Fortify]

I don't know if I'd take these ideas seriously, especially from PayPal.

Assuming it's still owned by eBay, its probably just trying to get some demand on ebay stocks (since they just seem to fall relative to their profits).

Also, I don't know if anyone uses PayPal for any other reason than it being useful for not putting in card details when paying for stuff, if you instead have to bother to sign a transaction or do something fancier then why would anyone bother?

All this being said, a centralised organisation controlling a cryptocurrency might make it more forgiving from scams and accidental mistakes (eg sending to addresses spelt wrong).

Paypal is not still owned by eBay and hasn't been owned by eBay for over 5 years now. Paypal is actually heavy into Bitcoin already and has been allowing customers to buy crypto through it - actually works brilliantly for them because they get to have some control/leverage over the crypto market with minimal risk to themselves. Paypal of course charge their cut and don't allow any sort of customer control of the wallet, which minimizes any blockchain fees. This model is actually set to be much more efficient and environmentally friendly (layering wallet funds in a separate system controlled via database records) as long as they can adequately secure a master wallet.

[jaberwock]

I am sure it would be something that is dangerously close to USDT and way too centralized for my taste. Doesn't mean that they will do it, there are tons of companies trying to do something in blockchain world as well without going into monastery ways, just using blockchain for business and database related stuff, but none of them really do it, or at least only a handful of them do it. This is proof enough that Paypal is just looking into it and that's all, we are not looking into anything else right now.

I hope they do not do it because I know their power and if they do it then we are going to see a lot of people starting to use it as well.

[m2017]

I read this like a day ago, I just glanced through it on Cointelegraph. Why would PayPal want to create their own stable coin when the coins they are supporting now like bitcoin can not be transferred (received or sent), PayPal users can only buy or sell but can not send and receive. PayPal can change this later but I am wondering if they do not change, how would it be different from fiat? Also, PayPal is a company that can not be trusted about cryptocurrencies as they bring up confusions that can mislead people about what cryptocurrencies are, they are even worse than centralized wallets when it comes to cryptocurrencies. I can never use PayPal for anything related to cryptocurrencies.

I have doubts about the words in bold in your text. Here are articles from almost a year ago: https://usethebitcoin.com/paypal-withdraw-bitcoin/ and https://www.msn.com/en-us/money/news/paypal-will-finally-let-users-withdraw-bitcoin-ethereum-other-cryptocurrencies/ar-AAKqCVz

Regarding this, I would like to know the opinion of US users (we will clarify that only they have the opportunity to buy BTC on the PayPal platform). Is it possible to withdraw BTC from PayPal to other wallets?

Did you really think that the traditional banking and financial system would simply wither away from the mass adoption of crypto?

PayPal will think of all these before starting or they will face new rules and regulation from the US government. Just know that PayPal main goal is fiat and central control.

Yes, PayPal influenced by the government like any other financial institution, therefore, they will do as government are told. It seems to me that the main goal of PayPal, like any other bank, is, 1st of all, to make a profit, and everything else is secondary.

[HashingTower]

There is nothing wrong in seeing a stable coin launched from a company that have already implemented crypto payments into its platform, support or no support I expected this idea to work out because it's simply just a stable coin and it will be centralised too, what could possibly go wrong?

[AicecreaME]

Paypal has been existing so many years now. If I'm not mistaken it is already roughly 23 years operating. And right now, there are so many exchangers and e-wallet both at the same time that has been rising and developing which means Paypal has now so many competitors unlike before wherein there are only a few. With this being said, could probably be the reason why they are planning to launch their own stablecoin, if it was really true. Maybe Paypal just wants to have an edge over other exchangers and e-wallets nowadays to make their customers stay and to have more possible users for the following months once it will be implemented.

Although I just hope they won't be too strict on the usage such as the buying and selling of it because that would defeat the purpose if they would be too controlling of the users' decision over the handling of the stablecoin. If this would really happen, let's see if they would be able to handle it well. Most central exchangers want to be involved in blockchain technology perhaps because of its features. Let's just wait how they will manage it. Hopefully, they'll implement it well to retain and encourage more customers.