PayPal pauses its plan for Stablecoin according to reports. The payment company has come out to say that if it continues with its plan for a coin, then it will get to work closely with regulators.
PayPal Pauses Its Plan For Stablecoin According To Reports
Payment Company PayPal has halted its plans to develop its very own stablecoin according to a Bloomberg report on Friday. The online payment provider abandons its plan because of increased scrutiny by regulators on cryptocurrency and this includes an investigation by the New York Department of Financial Services into Paxos Trust Company which is a stablecoin issuer as well as a partner of PayPal.
PayPal Reveals That It Is “Exploring” A Stablecoin
PayPal reveals that it is “exploring” a stablecoin. “If and when we seek to move forward, we will of course, work closely with relevant regulators,” a spokesperson from the company said on Friday.
Both PayPal and Paxos last august said that they were working on developing crypto products. The two platforms have been working closely as partners in bringing cryptocurrency to PayPal ever since 2020.
How Stablecoins Are Different From Cryptocurrencies
Stablecoins are different from Cryptocurrencies such as bitcoin and ether. And instead of being mined just like other types of crypto, stablecoins are tied to assets such as the US dollar. And although these coins are considered to be less risky than other Cryptocurrencies, 2022 saw the failure of stablecoins thus leading to a rapid decline in the crypto market.