As cryptocurrencies are always in the news nowadays, it seems only a matter of
time before it becomes part of the mainstream economy. With growing interest
in cryptocurrencies among individuals, businesses, and institutions, more and
more businesses are getting ready to accept cryptocurrencies for payment. In
the US, big tech companies like Microsoft and Tesla have been doing it for a
long time. But in recent times, many smaller companies are accepting crypto
payments. If the growing popularity of cryptocurrencies is pushing businesses
towards it, another reason is the minimal transactions fees involved in the
transactions. To increase the customer base, PayPal accepted cryptocurrencies
for a long time. Still, in the latest development, according to Bloomberg News,
the company has introduced its cryptocurrency named Stablecoin.
Although the concept of pegged cryptocurrencies might sound new, it is not new at all. The USD
Coin, Binance, True USD, DAI, Tether, Digix Gold Token, and TerraUSD are some stable coins
linked to the US dollar. When Stablecoin comes to the market, it will be an addition to the existing
list of pegged cryptocurrencies but how much help it will be for payments remain a question.
The company understands the limitations of the existing pegged coins because none of these are
built to make payments. It is necessary to have a regulatory framework and clarity about the
licenses needed to use the currency for payments for facilitating payments. With a global user
base of 377 million, PayPal needs to ensure the stability of the coin and match the scale of its vast
user base. Additionally, there must be a robust security protocol to ensure safe payments as it
happens with fiat currencies.
The company is maintaining a low profile about the prospects of the new cryptocurrency.
However, the idea of introducing a stable cryptocurrency with built-in payment arose from the
need to provide more payment options to users. It will give the company a shot in the arm and
help meet its grow