In early 2022, payment giant PayPal announced the launch of its own stablecoin. The company has stated that its token will be pegged to the US dollar.
However, last week it became known that PayPal was suspending the development of digital currency due to the tightening of the policy of the US authorities towards the fintech industry.
The stablecoin was developed in partnership with Paxos Trust Company. However, this team came under scrutiny from the New York City Department of Financial Services.
As Bloomberg clarifies, PayPal planned to issue a token in the coming weeks. However, top management decided to suspend the development of the coin, however, research work in this direction will continue.
The financial giant expressed its willingness to cooperate with all US regulators.
Without their approval, PayPal will not issue a stablecoin so as not to pose a threat to investors.
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