• PayPal has launched a new stablecoin named PYUSD (PayPal USD) that is backed by deposits in U.S. dollars, short-term Treasuries, and comparable cash forms.
• The company intends to make this stablecoin accessible to customers within the United States and use it for digital transactions and Web3 capabilities.
• With its user base exceeding 350 million, PayPal also allows customers to purchase, sell, and retain cryptocurrencies like Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
Introduction of PYUSD Stablecoin
PayPal, an American fintech firm, has introduced a new stablecoin named PYUSD (PayPal USD). This stablecoin is linked to the U.S. dollar’s value and supported by Paxos Trust Co with deposits in U.S. dollars, short-term Treasuries, and comparable cash forms. Constructed using the Ethereum platform , it is crafted for digital transactions and Web3 capabilities. The company has indicated that it will soon be accessible to customers within the United States.
Purpose of PYUSD Stablecoin
PYUSD can be exchanged for U.S. dollars instantly or traded for various cryptocurrencies on the PayPal platform as well as transferred between PayPal and Venmo accounts . Dan Schulman, the President, and CEO at PayPal stated that “the shift towards digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar… Our commitment to responsible innovation and compliance provides a foundation necessary to contribute to the growth of digital payments through PayPal USD”
Current Use Cases For Crypto On Paypal
Currently, PayPal enables customers in both the U.S. and UK with options for purchasing, selling ,and holding different types of cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH),and Litecoin(LTC). Furthermore users are able to transact these digital assets via paypal platform .
Potential Impact Of PYUSD Stablecoin
With its user base surpassing 350 million , introduction of this new stable coin could revolutionize paypals payment framework . Charlie Shrem commented on twitter “the launch of Paypals stable coin will skyrocket bitcoin up to $250k faster than expected , while etherium will 10x faster than predicted ” .
The launch of this new stable coin could potentially have huge implications on bitcoin prices but only time will tell how much bitcoin prices move due to this news . It could also help accelerate adoption of cryptocurrency amongst other financial platforms as well as make crypto payments easier .