Is PayPal Launching a Crypto? – Trustnodes

Is PayPal Launching a Crypto?


Paypal HQ

Paypal might be planning to do a Libra according to comments sent to the European Commission which has opened a public consultation on digital assets and cryptos.

In those comments they reveal potentially more holistic plans than the simple offering of buying and selling of bitcoin and ethereum as has been rumored.

Explaining why the left the Facebook led consortium for a crypto blockchain, Libra, Paypal revealed they have their own plans, stating:

“As an innovative FinTech company and by virtue of its mission, PayPal is monitoring the evolution of the crypto-asset space.

In 2019, PayPal initially signed a non-binding letter of intent to participate in the Libra Association with the intention of learning more about the proposed use of blockchain technologies to provide financial services to unbanked populations across the globe.

Since the project’s inception, PayPal has taken unilateral and tangible steps to further develop its capabilities in this area, and therefore – without questioning the value of the project – took the decision not to participate in the Libra Association and to continue to focus on advancing our existing mission and business priorities to democratize access to financial services.”

There isn’t much that can be read into the above statement except that they confirm they are planning something to do with crypto.

What that involves exactly is not clear, but they might be planning a stablecoin of their own and perhaps even their own blockchain.

Both would presumably court regulatory requirements. Moreover their own controlled financial blockchain might be unlikely as that sort of information would have probably leaked by now.

Paypal does however ask the European Commission to take a technological neutrality point of view, further asking for regulatory and license requirements for crypto blockchain companies.

Suggesting they may be trying to keep their own position especially in regards to international transfers, so they may well launch a crypto wallet for bitcoin, eth and other digital assets, as well as potentially a stablecoin that perhaps even runs on their own blockchain, like Libra.

Or they could well launch it on ethereum with the Turing complete world computer allowing mutability within smart contracts if they are so designed.

That would allow Paypal to comply with all regulations which their circa 300 million users satisfy already, thus potentially opening further access to cryptos for Paypal users and access to a new market for bitcoin and ethereum.