Key Points:PayPal has stopped working on its stablecoin due growing regulatory scrutiny.
Paxos stresses consumer protection on its website. It states that the reserves it issues for stablecoins are kept entirely in cash and US Treasury bonds.
PayPal announced that it was working on a stablecoin that would be pegged 1:1 with the dollar.
Due to regulatory scrutiny, PayPal has stopped working on its stablecoin. Bloomberg reports that the stablecoin was supposed be released in the next few weeks. This announcement was made a day after it was announced that the New York Department of Financial Services was investigating Paxos, a partner PayPal had with on its stablecoin project.
A spokesperson for PayPal said that they are currently exploring stablecoins. “If and when we want to move forward, will we of course, work closely avec relevant regulators?”
Stablecoins have a fixed price and are supported by assets such as cash and bonds. PayPal, a San Jose, California-based company, was the first to announce that it was considering launching its own stablecoin. The state’s Department of Financial Services oversees Paxos in New York, which is issuing the third-largest stablecoin under the Binance brand. Paxos stresses consumer protection on its website. It states that both the reserves it issues for the stablecoins are completely kept in cash and US Treasury bonds. Pax Dollar, the company’s own stablecoin is also available. PayPal announced that it was working on a stablecoin that would be 1:1 to the dollar. In June, following the Terra collapse, the New York regulator issued stablecoin guidance. It informed issuers that stablecoins must be backed by assets other than the issuers’ financial resources. This authority also granted Paxos virtual currency license. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comAnnieCoincu NewsTags: Paxos InvestigationPayPalStablecoinstablecoin project