The cryptocurrency market has grown tremendously in recent years. Many investors and large companies support its development. In addition, market players are issuing new tokens, which puts more pressure on banks. PayPal has officially announced that it too plans to launch its own cryptocurrency.
The cryptocurrency industry is growing
PayPal plans to launch its own cryptocurrency which will be known as PayPal Coin. This move by the company comes as the launch of the Diem cryptocurrency, which is affiliated with Facebook, is approaching.
According to statistics from institutions specializing in the field of cryptocurrency market research, technological and government initiatives have driven the value of the stablecoin market at around $140 billion, seven times more than two years ago.
Remember that stablecoins are digital currencies, whose value is linked to a currency issued by a government, such as the US dollar. This method avoids the volatility of cryptocurrencies like bitcoin. Analysts believe that over time, the stablecoin industry will follow the same path as the mobile wallet market. Indeed, the banks could give way to much more successful technology companies.
Businesses get ahead of banks
When it comes to stablecoins, corporations seem to be getting ahead of banks. Indeed, there are more and more fintechs entering the field, while banks are reluctant. On the business side, they use mobile wallets like Apple Pay and Google. In addition, “they rely on technology platforms and assets that they uniquely control,” points out Richard Crone, a payments consultant in San Mateo, California.
Finally, it should be remembered that Facebook and PayPal already have extensive networks of consumers and merchants who are willing to use the offered platforms in order to sell goods and receive payments.
Companies specializing in the field of stable currencies want to develop new solutions to make the sector even more attractive. For example, PayPal announced the launch of its own currency. However, the company has not yet specified the launch date.
Source: American Banker
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