Paypal says it is looking into developing a dollar-backed stablecoin as payments giant boosts crypto efforts

The headquarters of PayPal is in San Jose, California.

The images are by Justin Sullivan.

The payments giant is looking into developing a dollar-backed stable coin.

The company confirmed the news last Friday after a developer discovered evidence inside the app. The Block reported that talks were in progress in May of 2021.

The project is called "PayPal coin", based on the code and images.

The initiative was the result of a company Hackathon, according to a spokeswoman for Paypal.

A stablecoin is a type of cryptocurrencies that is backed by a foreign currency. The combined valuation of the stable coins issued by Circle, Tether, and Binance has increased to $164 billion from $11 billion two years ago.

Meta Platforms, formerly Facebook, is now developing its own stable coin. Facebook's project, called Diem, has hit a number of obstacles.
The administration of President Joe Biden has been working with top economic advisers and regulators to propose rules to regulate stablecoins since they have ballooned in size. Gary Gensler, Chairman of the Securities and Exchange Commission, compared stable coins to poker chips.
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