The digital payments company Paypal has been making a big push to enter the crypto industry and is now examining the possibility of launching their own stablecoin.<\/p>\n
The Developer Steve Moser found evidence in PayPal\u2019s app that revealed the company\u2019s intention to dig into the stablecoin\u2019s terrain. He shared the data \u2013hidden code and images\u2013 of what could become the \u201cPayPal Coin\u201d with Bloomberg<\/a>. Reportedly, the coin would be backed by USD.<\/p>\n The senior vice president of crypto and digital currencies at PayPal Jose Fernandez da Ponte confirmed the information in a statement for Bloomberg: \u201cWe are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators,\u201d<\/p>\n As he also said on a podcast, the intention appears to be to design a stablecoin \u201cthat is purpose-built for payments.\u201d<\/p>\n Previously, we had reported<\/a> that PayPal had been discussing launching their own digital coin. They had been engaging with developers like Ava Labs for this purpose.<\/p>\n Related Reading |\u00a0<\/i><\/b>PayPal, Visa Lead Massive $300 Million Investment In Blockchain Capital<\/a><\/em><\/strong><\/p>\n PayPal is not new to crypto. They had launched a service to convert the user\u2019s holdings into fiat currencies (Bitcoin, Ethereum, Bitcoin Cash, and Litecoin), but this feature was welcome with divided views.<\/p>\n Bitcoinist had reported<\/a> before Andreas Antonopoulos<\/a>\u2018 thoughts on Paypal\u2019s crypto feature:<\/p>\n If you buy your Bitcoin on PayPal you didn\u2019t buy Bitcoin. What you bought is, exposure to the price of Bitcoin mediated by a custodian who you hope is doing good risk management practices. But, who you cannot audit for their actual existence of reserves.<\/p>\n<\/blockquote>\n PayPal is no longer viewed as the safest way to pay. Here are some relevant points to consider:<\/p>\n \u00a0<\/p>\n Related Reading |\u00a0<\/i><\/b>PayPal Launching UK Crypto Service This Week, But Community Remains Split<\/a><\/em><\/strong><\/p>\n \u00a0<\/p>\n We don\u2019t know yet what their own stablecoin might look like, but a payment company like Paypal is anything but decentralized and defeats \u2013or even offends\u2013 the original ideals of crypto.<\/p>\n As they try to dive in and catch a wave of the crypto hype, seeing their history makes people wary of any of their products.<\/p>\n Furthermore, President Biden just signed<\/a>\u00a0the $1.9 trillion American Rescue Plan into law, which includes the requirement for payment companies like PayPal, Venmo, and Zelle, to report to the tax agency all transactions totaling $600 or more in a year, thus the users \u201cmust file and furnish a Form 1099-K\u201d to report all commercial income, said the IRS.<\/p>\n Previously, the platforms only had to report transactions over $20,000. As the tax agency explained<\/a>, this also applies to those who \u201chave a holiday craft business\u201d and have used these apps to receive payments.<\/p>\nBut Do You Want To Own Their Crypto?<\/h2>\n
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<\/p>\nThe IRS Is Cracking Down On PayPal Payments<\/h2>\n
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