Skip to content Skip to sidebar Skip to footer

PayPal Freezes Its Stablecoin Plans Amid Crypto Regulatory Scrutiny

Well, it looks like PayPal has hit the brakes on their much-anticipated stablecoin project. It seems the regulatory rodeo of digital assets has got them a little spooked, and they want to make sure they understand the rules of the game before they jump in.

PayPal’s partner, the cryptocurrency firm Paxos, is now facing an investigation by the New York State Department of Financial Services! This has got PayPal a little skittish, so they’re taking a step back to make sure they’re ready for the crypto stampede.

According to the folks at Bloomberg, Paxos is holding all its stablecoin reserves in cash and US Treasuries. They’re committed to protecting consumers and making sure their stablecoins are as solid as a rock. And that’s just how PayPal likes it.

PayPal’s stablecoin will be backed one-to-one by the mighty US dollar and was set to be released in the coming weeks. But with the regulatory landscape shifting like the desert sands, PayPal wants to make sure they’re ready for the long haul.


Some Recent PayPal Developments!

In October 2020, PayPal got the green light from the New York State Department of Financial Services (NYDFS) to launch a new service that let customers buy, hold, and sell cryptocurrencies like a boss! That’s right, PayPal users can now get in on the crypto action and own Bitcoin, Ethereum, Bitcoin Cash, and Litecoin right in their digital wallets.

Fast forward to June 2022, and PayPal made history by becoming the first company to convert their conditional BitLicense into a full one. This meant that PayPal users could transfer their coins to wherever they wanted, including popular crypto exchanges like Coinbase.

And just when you thought PayPal couldn’t get any more crypto-friendly, they teamed up with MetaMask in December 2022. This partnership allows users to purchase cryptocurrencies on the MetaMask platform using their PayPal accounts. It’s PayPal’s way of helping newbies get started on their crypto journey and make buying coins as easy as pie!