PayPal temporarily stops the implementation of the stablecoin project.
The decision to suspend the project was made by the payment company in the context of a high level of attention to the field of cryptocurrencies. Insiders report that PayPal planned to introduce a stablecoin in the next few weeks, but this intention will not be implemented in the foreseeable future.
But the company has not finally abandoned its plans related to the cryptocurrency industry. The firm will continue to study the specifics of the turnover of stablecoins. If this currency demonstrates active development and distribution, PayPal will resume the implementation of its intention and begin to interact with the relevant regulatory authorities.
The company has not yet commented on the decision to suspend the stablecoin project. It is noteworthy that the decision was made after it became known that the partner of the firm for the implementation of the intention, Paxos Trust, became a person involved in the investigation of the Department of Financial Services of the State of New York.
Paxos Trust last week posted on its Twitter page a message about the speculation around the relationship with the US Office of Foreign Exchange Control. In this message, it was said that the firm applied application for the charter of the national trust bank from the Office, and was not denied the charter.
PayPal’s decision is thoughtful. After last year’s collapse of FTX, the cryptocurrency sector is in a difficult position. The future of this industry will most likely not be associated with close cooperation with traditional banks. Pressure from regulators will increase in the US. Retail investors’ interest in this area is declining, and the trend has no signs of an imminent change for the better.
As we have reported earlier, German Antitrust Regulator Investigates PayPal.