PayPal suspends development of its cryptocurrency

According to Bloomberg, payment giant PayPal has suspended the development of its own stablecoin. The decision was influenced by an investigation by US regulators into Paxos.

Earlier it was reported that the New York State Department of Financial Services (NYDFS) launched an investigation into Paxos Trust, the issuer of the Pax (USDP) and Binance (BUSD) stablecoins. It is not yet known what exactly became the subject of the regulator’s attention, but PayPal worked with this company to create its stablecoin.

It was expected that PayPal’s stablecoin would appear in the coming months. The stablecoin was supposed to be pegged to the US dollar.

«We are still exploring the possibilities of stablecoins. If and when we decide to continue our project, we will certainly work closely with all regulators,» said PayPal spokesperson Amanda Miller.

Recently, PayPal reported that the amount of digital assets on its customers' accounts has significantly decreased. The amount decreased by 13% compared to September last year and amounted to $ 604 million.