PayPal Coin: to be or not be?

What is stablecoin?

This type of digital assets emerged as a result of the banking sector’s digital revolution in 2014. Stablecoins offer many advantages of virtual currencies such as cheap transaction costs, fast payments, blockchain technologies, and eliminating excessive volatility. Against the backdrop of cryptocurrency volatility, coins that combine the benefits of both decentralized currencies and fiat money are rapidly gaining momentum. The tendency is represented in the policies of the world’s largest payment systems, which integrate stablecoins into their payment networks to preserve their competitive market positions. Thus, these factors highlight the critical need for innovative financial institutions, as well as to optimize their technology and business processes.

PayPal and cryptocurrency

According to a corporate spokeswoman, the data concerning the development got into the app as a consequence of an internal hackathon. During such an event, developers create new technologies that may never be released. Based on the statement of Fernandez da Ponte, the vice president of digital currencies, the business hasn’t yet seen a stablecoin expressly built for payments. To use PayPal, stablecoin must allow large-scale payments and have a high level of security. In other words, PayPal requires a currency to provide clarification on the regulation, governance mechanism, and relevant licenses.

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BIT4YOU.io

BIT4YOU.io

bit4you is an european crypto exchange platform. We are facilitating the transition between crypto currencies and traditional currencies such as euro.