PayPal is looking into the possibility of releasing its own stablecoin as the payment process company continues to push its way into the world of cryptocurrency.
Jose Fernandez da Ponte, senior vice president of crypto and digital currencies at PayPal told Bloomberg News on Friday: “We are exploring a stablecoin; if and when we seek to move forward, we will of course, work closely with relevant regulators.”
The development of an in-house stablecoin, a cryptocurrency with value connected to a more stable currency or commodity, was first discovered in the source code of PayPal’s iPhone app by developer Steve Moser.
Moser shared the details with Bloomberg News, which reported that coding indicates such a coin would be pegged by the U.S. dollar and named PayPal Coin.
Moser said that images and references to Neo cryptocurrency were also found in the PayPal’s app, which already currently supports Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
The PayPal Coin logo looks like PayPal’s original logo but with two horizontal lines going through it, the news outlet reported.
PayPal said images and the code were the result of a recent internal hackathon.
The internal event saw teams of engineers come up with new ideas and developments which may never actually see the light of day within the company’s blockchain, crypto and digital currencies division.
A PayPal spokeswoman said this means the final product, such as the stablecoin’s name, design and features, may yet change when it is made public.
Speaking on the Unchained podcast in November 2021, Fernandez da Ponte said that PayPal has “not yet seen a stablecoin out there that is purpose-built for payments.”
He added that if the company were to make their own stablecoin, it would need to support payments at scale while ensuring the security of the network
“There would have to be clarity on the regulation, the regulatory frameworks, and the type of licenses that are needed in this space,” he said.
In November, Venmo, which is owned by PayPal, revealed a new feature which would enable push notifications for customers for Bitcoin, Ethereum, Litecoin and Bitcoin Cash, all of which are available to hold and sell on the app.
The notifications will tell customers when their cryptocoin’s value has risen or fallen by five or 10 percent.
“With this new functionality, customers have an easy way to stay up to date on pricing changes as they continue to explore the world of crypto through Venmo,” PayPal said in a statement.
PayPal has been contacted for comment.