In a significant move, PayPal (PYPL.O), a prominent player in the payments sector, announced on Monday the launch of a stablecoin backed by the U.S. dollar. This marks a groundbreaking step as the first major fintech company to fully embrace digital currencies for facilitating payments and transfers.
Following the announcement, PayPal’s shares experienced a 2.66% increase on Monday, highlighting the company’s strong stance amid the challenges faced by the cryptocurrency industry. Over the past year, the industry has been grappling with regulatory obstacles, compounded by notable instances of collapse.
Ian Katz, the Managing Director of Capital Alpha Partners, commented on this development, stating, “While not as divisive as Facebook, PayPal carries substantial influence that will undoubtedly attract attention from Capitol Hill, as well as regulatory bodies like the Federal Reserve and the Securities and Exchange Commission.”