Daily Management Review

PayPal is considering issuing its own cryptocurrency


PayPal is thinking of launching its own cryptocurrency with a stable price. A reference to "PayPal Coin" and the logo of the future digital currency, pegged to the U.S. dollar, was found in the code of the online wallet application.

Online payment service PayPal is thinking about issuing its own cryptocurrency, Jose Fernandez da Ponte, senior vice president of cryptocurrency and digital currencies at the company, told Bloomberg.

PayPal is exploring the possibility of issuing a stablecoin, the top manager explained. Such cryptocurrencies are linked to existing currencies or another real asset, which helps stabilise their value. If the company decides to launch its own cryptocurrency, it will do so in cooperation with regulators, Fernandez da Ponte assured.

Signs that PayPal is creating a cryptocurrency were discovered by developer Steve Moser in the code of an iPhone digital wallet app, Bloomberg noted. According to the information and images, the cryptocurrency could be named PayPal Coin and would be pegged to the U.S. dollar.

A PayPal spokeswoman explained to Bloomberg that the images and code revealed are the result of a hackathon in the department of blockchain, cryptocurrency and digital currencies. At hackathons, developers typically create and test new products that may not make it to full launch: this means PayPal's cryptocurrency logo, name and features could change by the time of public release, Bloomberg noted.

source: bloomberg.com