PAYPAL IS 'EXPLORING' LAUNCHING ITS OWN STABLECOIN

PayPal Holdings Inc. has confirmed that it is looking into the launch of its own stablecoin in its cryptocurrency push. The company announced after evidence was found within its iPhone app. Jose Fernandez da Ponte senior vice president said that the company is currently exploring stable coins. If and when they decide to launch them, they will work closely with regulators.It's easier than ever to purchase cryptocurrency. All you need to do is open an app on your smartphone.

PayPal is one of the most popular online and mobile payment platforms that allows users to buy and sell cryptocurrencies starting at $1. If you are looking to add crypto to your portfolio, it is important to think about the platform you choose and whether or not you should invest in it.Even the most well-known and trusted coins, Bitcoin and Ethereum, are still volatile. Experts recommend that you invest not more than 5% in crypto, and keep it out of the way of saving for emergencies and paying down high-interest debt.Where you purchase your crypto could have significant implications that you should consider before you decide to invest. Although it may seem easy to purchase crypto using an app that you trust, such as Paypal, there are some limitations to this option compared to traditional cryptocurrency trading platforms.

Here are the basics before you buy crypto on PayPal

Anyone can use PayPal to buy, sell and hold crypto. While you can use crypto to pay for certain purchases, it is generally not a good idea to use any cryptocurrency for payment. Experts recommend that you buy and hold your crypto for the long term, just like other long-term investments.PayPal and other apps, such as Venmo or Robinhood are making crypto easier to access, which is a big draw for beginner investors. However, increased accessibility can increase your risk.Julian Morris is a certified financial planner at Concierge Wealth Management, Boston."If you have a PayPal account and are curious about cryptocurrency, then you can open PayPal and click crypto to get a few hundred dollars of cryptocurrency." They make it so easy.David Yermack is a New York University Stern School of Business finance professor who studies cryptocurrency. It shouldn't be your primary focus.He says that diversification is the best way to invest to be successful.

How to buy crypto on PayPal

You will need an account to buy cryptocurrency from PayPal. You don't need a PayPal account to buy crypto. All you have to do to purchase crypto is click the button that says "crypto", and choose which coins you want to buy.On the PayPal app, you can buy four types of crypto: Bitcoin, Ethereum, and Litecoin. Experts recommend that you stick to Ethereum and Bitcoin if your first investor.You will need funds to complete your purchase. A week's spending limit is $1 to $100,000. PayPal charges a fee to buy and sell crypto. This fee varies depending on how much you purchase.

Launching Its Own StableCoin

PayPal confirmed that it is currently "exploring a stabilization" and could be called PayPal Coin. This was after a developer discovered evidence of such a stable coin in the source code for the company's iPhone application.Jose Fernandez da Ponte, PayPal's senior vice president for crypto and digital currencies, stated that the company would like to proceed with the stablecoin while working closely with regulators. This approach could help the fintech company avoid the wrath of US senators who condemned Meta's Diem cryptocurrency Project.The company clarified that the source code for its iPhone app was created in an internal hackathon. Cointelegraph reached out to PayPal for more information. A spokesperson confirmed the previous reporting but didn't offer any commentary.It is difficult to predict the potential impact of a PayPal stabilitycoin on payments in general and the cryptocurrency industry. Some experts believe that the move by the firm was a positive one for the sector, while others think the stablecoin will have more of the same.

PayPal Coin could normalize crypto payments

A traditional financial company moving into cryptocurrency and launching its stablecoin is different from a crypto-native business launching a stablecoin. Traditional finance companies provide services to users who don't need to deal with cryptocurrency wallets and the volatility in this area.PayPal has over 350 million users. It allows users to buy, sell and hold Bitcoin (BTC), Ether(ETH), Bitcoin Cash/BCH (BCH), and Litecoins (LTC) in the U.S. and UK. PayPal also allows users to make payments in crypto assets. Although it is not clear how many PayPal users have used cryptocurrency to pay for their purchases, it is well-known that stablecoins can be used to trade and take advantage of decentralized financial opportunities.According to Veem CEO Marwan Forzley (CEO), PayPal is expanding its reach into cryptocurrency by launching a stablecoin. This could encourage other traditional banks and payment companies to explore blockchain technology. Forzley stated to Cointelegraph that stablecoins would "likely become part of the global payments scheme", as small businesses need to move money in a secure environment, with on-and off-ramps for different applications.Max Galka, CEO at Elementus' blockchain search engine, seemed to agree. He noted that stablecoins can be immediately placed in a trusted realm because globally recognized platforms like PayPal support cryptocurrencies.Galka stated that PayPal's launch of its PayPal coin would "definitely increase cryptocurrency accessibility to more people," Galka told Cointelegraph.He stated that it was a "natural fit" for PayPal to create a stable coin. This could put the firm "squarely on top of the map as a cryptocurrency company," which could help boost its other offerings. The trust people have in PayPal could also see crypto and digital currencies at PayPal serve "a lot more purposes than what traditional stablecoins could offer, using that [trust] as their payments rails."Cointelegraph spoke with Arbel Arif, the founder, and CEO of the crypto marketplace Shopping.io. He said he was pleased by PayPal's entry into crypto markets and that "big players are enhancing the e-commerce crypto transactions bring us closer to the new era in commercial trading."Tim Frost, the founder and CEO at Yield App wealth management platform, spoke to Cointelegraph to say that cryptocurrency payments are "finding a way into the mainstream" because "numbers of companies now permit digital asset owners to use standard Visa or Mastercard to pay with digital currencies."Frost isn't sure if PayPal would launch its stablecoin to jumpstart a shift to cryptocurrency-focused payment systems, but he believes it has the potential.However, not everyone agrees that PayPal Coin is revolutionary. Rytis Bieliauskas is the chief technology officer at cryptocurrency payment gateway CoinGate. He said that he doesn't see how a PayPal stablecoin could be fundamentally different from PayPal, as long as it's centrally controlled and its value is guaranteed by the company.Bieliauskas said that it was "interesting to observe that PayPal wants to use crypto to make a positive PR move." This suggests that the public views cryptocurrencies as something positive and not negative.

Overcoming regulatory obstacles

PayPal stated that it would work with regulators to develop its stablecoin, but it must still overcome regulatory hurdles due to the business nature of its operations.Eli Taranto is the chief business development officer of EQIBank, a digital bank licensed to work with high-net-worth individuals and corporations. Taranto explained to Cointelegraph that PayPal's geographic footprint will make it confront "worldwide regulatory problems" regarding crypto. This will be "quite interesting and a challenge."Taranto stated that PayPal's ability to appease regulators will have an impact on other institutions. They will see it as a sign of global regulatory compliance.Not only have stablecoin issuers been subject to scrutiny by regulators but also the pressure from the cryptocurrency community for transparency about their backing of stablecoins. PayPal will deal with increased scrutiny when it launches a stablecoin.

PayPal's benefits from stablecoins

PayPal is suing its stablecoins, which is a positive for its bottom line. Caleb Silver is the editor-in-chief of Investopedia's financial information portal. According to its most recent quarterly filing, transaction-related expenses cost PayPal $2.7 Billion in the third quarter of 2021.PayPal could save significant amounts on transaction costs by using Solana, a high-transaction throughput blockchain. It is not currently possible to purchase or sell Solana ( SOL) via its platform. The blockchain on which it will deploy its stable coin remains unclear.Arca's president stated that it is likely that people will adopt digital assets through a third party who has gained their trust like PayPal.There is not much information available about PayPal's plans for stablecoins. Steve Moser, the iPhone developer who discovered PayPal Coin's code, later revealed that PayPal contained references to stablecoins tied to the pound or euro in its application. This suggests that PayPal will launch a variety of stablecoins linked with different fiat currencies.