Reportedly PayPal suspended its development work on its Stablecoin project.
PayPal is a popular digital Bank & payment platform, which is known to provide international payment services to people easily. For the last few years, PayPal has been providing Crypto trade services to customers. In Jan 2022, PayPal started to work on its centralised digital currency to allow CBDC & stablecoins payment via PayPal in the future.
On 10 Feb 2023, Bloomberg reported that the PayPal team now stopped work on its Stablecoin project and probably will resume work on this project in the future.
PayPal spokesperson reportedly said:
“We are exploring a stablecoin….If and when we seek to move forward, we will, of course, work closely with relevant regulators.”
Investigation against Paxos
According to a few reports, PayPal took this decision because of an ongoing investigation against stablecoin issuer company Paxos.
Paxos provides Pax dollar (USDP) and Binance USD (BUSD) as the top two trusted stablecoins in the crypto industry. This company owns a virtual currency licence BitLicenses – issued by NYDFS. This stablecoin issuer company also received a provisional bank charter U.S. Office of the Comptroller of the Currency (OCC) in 2021.
Reportedly Paxos is under closer scrutiny than its peers may be. So probably here Paxos is facing regulatory heat with its operations and PayPal doesn’t want to take any risk with its services.
Last week, a few rumours claimed that Paxos has been asked by the OCC agency to withdraw its application for a national trust bank charter.
On 9 Feb, the Paxos team took to Twitter to revoke all such reports & rumours and confirmed that it will work continuously with OCC under compliance.