People familiar with the matter: payment giant PayPal is exploring the possibility of launching a stable currency

This article comes fromThe Block, original author: Ryan Weeks

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• This article comes from

• , original author: Ryan Weeks

• Odaily Translator |

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The Block has learned that PayPal is exploring launching a stablecoin.

Four sources familiar with the situation said that PayPal has had multiple rounds of communication with some stablecoin protocol developers in the industry.

PayPal announced its foray into crypto services last fall.

It is understood that PayPal is exploring the launch of a stable currency.

Four sources familiar with the situation said that PayPal has had multiple rounds of communication with some stablecoin protocol developers in the industry, suggesting that the payment giant may be inclined to cooperate with third-party companies.

Organizations that have held talks with PayPal about stablecoin development include Ava Labs, the team behind the Avalanche blockchain, according to people familiar with the matter. It was unclear what other agreements were involved.A PayPal spokesperson told The Block, “PayPal continues to explore the potential of digital currencies, digital financial services infrastructure, and how we can help enhance digital commerce as a trusted partner in this space.”"As a global company working with regulators and industry partners around the world to build the next generation of financial systems, the company communicates frequently about the technologies that will enable these goals. However, hearsay and speculation cannot predict the company's future plans," the spokesperson said. "

If PayPal does move forward with such a project, it would represent a major escalation of its work in the crypto space. Stablecoins are digital assets that represent fiat or government-backed currencies, using a blockchain network as a payment channel. According to data collected by The Block, there are currently more than $80 billion worth of stablecoins in circulation on the market.A source told The Block, “It seems like they’re more likely to do something with an existing stablecoin partner than to build it themselves because I think that’s going to bring something to market faster, I think that's their main concern."Rumors of PayPal looking to launch a stablecoin

has been around for a long time. In fact, sources say the move is the best-kept secret in the crypto industry.。

Last fall, PayPal announced that it wouldCNBCPartnership with startup Paxos

, to implement encryption buying and selling functions on its platform. Since then, PayPal has expanded the scope of its crypto offerings.Christian Catalini As reported in April, a person familiar with the matter revealed that the Diem Association aims to launch a pilot for a single-currency stablecoin pegged to the U.S. dollar in 2021.

Related Reading:

Diem Association Plans Single-Currency Stablecoin Pilot in 2021

At a recent meeting, Diem chief economist

The Diem stablecoin is intended to be a temporary stand-in for a CBDC, explained. According to Catalini, the main goal of the Diem Association is to create a cross-border payment structure and create a trusted market around it. Ultimately, the goal appears to be to replace Diem's ​​own stablecoin with a CBDC in the system. Diem sees cooperation with central banks as a future expansion of its network, as a transitional measure until a CBDC is rolled out. Until these CBDCs are launched, the Diem stablecoin will be the means of payment. Instead of a token pegged to a basket of assets, it will be a fiat-backed 1:1 stablecoin with “high-quality liquid assets” making it insulated from any major market events, such as interest rate shocks or bank defaults . The new plan appears to be an attempt to assuage previous G7 concerns about stablecoins and extreme market conditions.

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