And rightly so since PayPal absolutely requires an efficient payment system in order to handle its massive daily usage. PayPal’s transaction volume may not be able to rival Tether’s (USDT), which amounts to several hundred billion dollars, but it can certainly boast in terms of its number of transactions. This is because PayPal is one of the most prominent payment processors, used by nearly 400 million people to purchase goods online.
Furthermore, PayPal is notorious for its exorbitant fees. Therefore, if it finds a way to leverage blockchain technology to ease the costs of handling user transactions, then the decision would be a no-brainer.
Moving from a Non-Crypto Model to a Crypto Model
Unfortunately, building the infrastructure would likely prove to be difficult and time-consuming for a non-crypto company, which is why it makes more sense for them to seek out existing solutions and partner with established blockchain companies and organizations. Still, this undertaking takes time, which is likely the reason why the electronic commerce company has not officially made any announcements yet.
Choosing the right platform for a stablecoin would require careful planning and development. Ethereum, in its current state, would likely not be the most optimal blockchain to use. There are other alternatives like Solana, Chromia, etc. but so far only the Avalance team has been in talks with PayPal. Furthermore, no official announcement or confirmation has been made yet.
Last March 8, PayPal announced the complete buyout of Curv, a crypto firm that specializes in multi-party computation (MPC) and cloud-based digital asset security, which would likely aid its stablecoin development. However, PayPal’s on and off ramp solution is still unknown as of now.