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Feb 10 (Reuters) – PayPal Holdings Inc (PYPL.O) suspends work on its stablecoin as regulators step up scrutiny of cryptocurrencies and a key project partner faces a Department of Financial Services investigation of New York State, Bloomberg News reported on Friday.
PayPal had hoped to launch the stablecoin, which will be backed one-to-one by the dollar, in the coming weeks, Bloomberg reported, citing a person with knowledge of the matter.
“We are exploring a stablecoin; if and when we seek to move forward, we will of course work closely with relevant regulators,” a spokesperson for the payments company said in an emailed statement.
The cryptocurrency market is going through turbulent times as the collapse of some of its biggest players, including FTX, has shaken investor confidence in what was seen as the next big thing in the world of finance.
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A string of high-profile bankruptcies has sparked harsh global regulatory scrutiny of companies operating in the crypto industry.
Macroeconomic weakness also began to weigh on PayPal’s core business growth, with consumer spending, particularly discretionary shopping, coming under pressure due to a cost of living crisis, triggered by high inflation. for decades.
Reporting by Manya Saini in Bangalore; Editing by Anil D’Silva
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