PayPal Launches PYUSD: a U.S. Dollar Stablecoin on Ethereum
$PYUSD is a significant step towards PayPal's goal of becoming a major player in the cryptocurrency market.
Alex Sullivan
PayPal launched its own stablecoin: (PYUSD). The company says the cryptocurrency token is “fully backed by U.S. dollar deposits” and can be bought or sold on PayPal’s app or website at $1.00 per PYUSD.
“The shift toward 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, the president and CEO of PayPal, in a statement.
PayPal, the financial giant with 435 million active accounts, is taking another monumental step in the world of digital finance with the launch of its own stablecoin, PayPalUSD (PYUSD).
Source: Paypal
$PYUSD brings a new level of convenience and accessibility to the world of cryptocurrency. The token is fully backed by U.S. dollar deposits, providing users with the confidence that each PYUSD in their possession is directly tied to a corresponding dollar amount. This stability is a crucial factor in the growing shift toward digital currencies, offering a bridge between the traditional financial system and the emerging realm of cryptocurrencies.
With PYUSD, PayPal is poised to disrupt various facets of financial interactions. Person-to-person payments, once confined to traditional methods, can now be seamlessly executed using the power of blockchain technology. Purchases at online checkouts can be funded using the cryptocurrency, introducing a new dimension of flexibility and choice for consumers. Moreover, the ability to transfer PYUSD between PayPal and external wallets opens up avenues for both individuals and businesses to streamline their financial operations.
This strategic move also highlights PayPal's keen understanding of the evolving cryptocurrency landscape. The company has already enabled its users to buy, sell, and transfer popular cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin within its app. Moreover, PayPal obtained the New York BitLicense in the past year, allowing customers in the state to actively engage with cryptocurrency trading. As the U.S. government explores the possibility of creating its own digital currency, PayPal's embrace of cryptocurrency positions the company at the forefront of this transformative shift.
PYUSD is built upon the Ethereum blockchain and is issued by Paxos Trust Company, a reputable firm headquartered in New York. Paxos specializes in providing a regulated blockchain infrastructure to its clients, ensuring a robust foundation for PayPal's stablecoin venture.
But after looking into the smart contract, they used a very old and outdated version, which sparked controversies among crypto enthusiasts on Twitter.
The PayPal contract has this comment: "avoid a name clash with an emerging standard in ERC865".
ERC865 was proposed in 2018 lmao.
They must've written this code years ago, found the old deployment script, and said "let it rip"
While PayPal's entrance into the stablecoin arena is groundbreaking, it's important to note that the digital currency landscape is not without its challenges. Recently, regulatory scrutiny has prompted Paxos to halt the offering of Binance's BUSD cryptocurrency in New York. This underscores the evolving regulatory environment surrounding cryptocurrencies and the need for clear guidelines as the industry continues to mature.
As PayPal launches its stablecoin initiative, it offers a tantalizing glimpse into the future of digital finance. The convergence of traditional financial mechanisms with the innovative capabilities of blockchain technology has the potential to reshape the global financial landscape. With PYUSD's arrival, PayPal reinforces its commitment to pioneering the future of finance and empowering its vast user base with newfound financial possibilities.
