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PayPal has suspended its crypto stablecoin development due to regulatory concerns in the industry.
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The stablecoin project was set to be backed one-to-one by the US dollar and was slated to arrive in the coming weeks.
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The decision to pause the development came after the investigation into Paxos, a key partner in the project.
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PayPal is one of the largest payment processing firms globally.
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The investigation into Paxos is being conducted by the New York State Department of Financial Services.
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PayPal has paused development to better understand the changing regulatory landscape for digital assets.
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A spokesperson for PayPal stated that the company will work closely with relevant regulators if and when they move forward with the stablecoin project.
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The development of the PayPal stablecoin began last year as part of the company's investment in the digital asset industry.
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PayPal was granted a BitLicense by the Department of Financial Services and became the first company to convert a conditional BitLicense into a full one.
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The exact timeline for when PayPal will resume development on the stablecoin is unknown at this time.