PayPal suspends development of its stablecoin

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

It was previously reported that the Department of FinancialThe New York State Department of Services (NYDFS) has launched an investigation into Paxos Trust, the issuer of Pax (USDP) and Binance (BUSD) stablecoins. It is still unknown what exactly came to the attention of the regulator, but PayPal worked with this company to create its stablecoin. 

It was expected that a stable cryptocurrency from PayPal would appear in the coming months. The stablecoin was supposed to be pegged to the US dollar.

“We are still exploring the possibilitiesstablecoins. If and when we decide to move forward with our project, we will certainly work closely with all regulators,” PayPal spokeswoman Amanda Miller said in an email to Bloomberg.

PayPal recently reported that the amount of digital assets in its customers' accounts had noticeably decreased. The amount decreased by 13% compared to September last year and amounted to $604 million.