The Prospect Behind Paypal’s New Policy
It is no secret that the PayPal stable coins are successfully capturing the market whereas Facebook’s libra failed as soon as it hit the market. All the credit goes to the vast knowledge and observation of the Washington payment giants and policymakers. They worked tirelessly to understand the market trends and needs first rather than presenting their proposal for disposal to the market.
According to the reports PayPal has officially announced to introduction of their stable USD Paypal coins, which will surely teardown the US Dollars. While it is a shock to the US currency, it is also a big step in the digital market.
With no offense, Paypal is the second biggest global company to introduce their Stable coins after Facebook but hoped to earn more value than Facebook libra from June 2019.
Although according to former executives, analysts, and finance experts, Paypal is undoubtedly in a more assertive position than Facebook, but still the market is still facing a stream of threats as the CEO of Paypal announced the introduction of stablecoins last week.
It’s been clear that the biggest meltdown for Facebook was the creator’s home in the crypto sector and the political opposition. Moreover, some blame can also be distributed to the wrong strategy planning. On the other side, Paypal’s policymakers have ensured a federal stable regulation to earn the legitimacy of the lawmakers. Another gain is the popularity of crypto tokens rising the fiat currency. So now the world is ready to opt for modern trends unline 2019 when Facebook faced the failure of the same strategy.
The Same statement is also passed by former chairman of the U.S Commodity Futures Trading Commission, Christopher Giancarlo. According to Him; “The world has changed dramatically since Facebook’s Libra project. There was no familiarity with stablecoins whatsoever,”
“Since then the administration, Congress, and the Federal Reserve have had time to get their minds around stablecoins and stablecoin regulation and there has been very extensive public relations by the industry, including a lot of lobbying.”
His statement cleared that, unlike Facebook, Paypal holds a strong base in Washington, and it is strategic timing to introduce their new policy in the market. Moreover, he had also hiddenly marked the mistake leading to Faebook’s failure in hyping their libra coins in the market. It was lucid that the world’s biggest social media giant was facing scrutiny over its privacy issues and Russian election interface. This was indeed their worst decision and the reason for their turndown.
In comments of a report by OpenSecrets, Paypal spent $1.13 million on federal lobbying last year.
Although Paypal and Meta have declined to comment on the situation the director of policy research for brokerage BTIG, Isaac Boltansky has mentioned in one of his interviews that; “From a policy perspective, there is a seismic difference between Facebook’s Libra and PayPal’s stablecoin,”
“There is still a wall between banking and commerce, so knowing that PayPal is very clearly on one side of that wall should assuage lawmakers.”