PayPal News: PayPal Launches PYUSD Stablecoin

 

 

The PayPalUSD (PYUSD) stablecoin is about to be released. According to the firm, each PYUSD token is “fully backed by U.S. dollar deposits” and may be purchased or sold for $1 on the PayPal website or mobile app.

PYUSD can be sent and received between PayPal accounts, used to pay for goods and services in stores accepting the currency, and moved to and from external wallets. According to PayPal’s website, it is possible to convert to and from PYUSD as well as the other currencies it accepts.

 

 

 

 

Stablecoins are so called because they are controlled by a central authority and pegged to a fiat currency such as the US dollar or the Euro. The United States government is still debating how to handle cryptocurrencies like stablecoin. After all, the demise of stablecoins like Tether and TerraUSD showed that they aren’t always reliable.

 

 

Launching today, PYUSD will be made available “in the coming weeks” to anyone in the United States who have a PayPal Balance. The Venmo app, which is owned by PayPal, will also have access to it “soon.”

It’s hardly surprising that PayPal would create its own stablecoin given that it already supports other cryptocurrencies for purchase, transfer, and sale within its app. These include Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. It also has a New York BitLicense, allowing it to sell and purchase cryptocurrencies to residents of that state. The United States government is investigating the feasibility of developing its own cryptocurrency.

 

Paxos Trust Company, a New York-based company that offers clients a regulated blockchain infrastructure, developed and issued the Ethereum-based stablecoin. New York regulators have recently cracked down on enterprises in the cryptocurrency industry, including Paxos, ordering it to stop offering Binance’s BUSD coin.

 

“The shift towards digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar,” said Dan Schulman, president and CEO of PayPal.