Can PayPal (PYPL 0.34%) disrupt the Stablecoins space, or is the company reinventing the wheel? This is the key question Fool.com contributors Chris MacDonald and Jon Quast discussed on the Jan. 12 edition of "The Crypto Show" on Backstage Pass.
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Jon Quast: This is fairly new news coming out on PayPal. Basically, there was rumors that it was developing its own stablecoin, and then Bloomberg was able to actually get PayPal to confirm.
Yes, they are working on a proprietary stablecoin of their own. There's not a lot of details here yet about PayPal when they're going to do it or if it's going to be tradable or how this actually is going to all work but big-time financial technology company getting into the stablecoin game.
Chris MacDonald: Yeah, it's definitely interesting. I know PayPal's been in this game for a little while. I think it was 2020 they started with their checkout with crypto feature. There's a few cryptocurrencies that PayPal allows crypto holders to pay for goods using crypto.
PayPal has been one of the early adopters in the space. I think the news was that they are exploring it, and they're working with regulators. I know we were talking before the show about company formerly known as Facebook, Meta Platforms, that was looking at their diem cryptocurrency and they've shelved it. It's unclear as to whether it's dead or not, but the regulation aspect with these things in working with regulators, the question is, can PayPal do that? Do they have the ability to get it approved, let's say as security, with regulators to be used for payment and this is decentralized?
Cryptocurrencies really aren't a centralized entity like PayPal is. It's going to be running its own stablecoin. To some extent, some crypto users, this is a very interesting piece of news because it maybe provides a direction for where the winds are blowing in the crypto world in terms of how stablecoins are going to be able to survive in the future.
