The payments company promises to collaborate closely with regulators if it decides to proceed with a coin.
According to a Friday Bloomberg article, PayPal’s ambitions to create its own stable coin have been put on hold.
According to reports, the online payment service provider postponed its plans as a result of increased regulatory scrutiny of cryptocurrencies. This involves a probe being conducted by the New York Department of Financial Services investigating PayPal and stable coin issuer Paxus Trust Company.
According to PayPal, it is “exploring” a stable coin. A spokesman said on Friday that “if and when we wish to move forward, we will of course, engage with with relevant regulators.”
PayPal and Paxus announced in August of last year that they were creating cryptocurrency solutions. Since 2020, the two have collaborated to integrate cryptocurrency with PayPal.
Stable coins are distinct from cryptocurrencies like ether or bitcoin. Stable coins are linked to assets like the US dollar rather than being “mined” like other cryptocurrencies. Stable coins showed signs of weakness in 2022, which caused the cryptocurrency market to drop even though these coins are thought to be less hazardous than other cryptocurrencies.