PayPal has stepped into the stablecoin arena with the launch of its very own cryptocurrency token, PayPalUSD (PYUSD). This stablecoin comes fully backed by U.S. dollar deposits, solidifying its 1:1 redeemability for the US dollar.
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Features of PayPal’s Stablecoin
One can now buy anything online from businesses that support Paypal with PYUSD. Users can now make person-to-person payments with PYUSD. Further, shopping enthusiasts have the option to fund their purchases with this currency during checkout. Additionally, transferring PYUSD between PayPal and various external wallets is now a breeze. As an added benefit, currencies supported by PayPal can easily be converted to and from PYUSD.
Why Are They Called Stablecoins?
The term ‘stablecoin’ stems from their inherent nature. They are centralized and anchored to government-recognized currencies like the US dollar or Euro. However, it’s essential to note that stability can sometimes waver, as evidenced by the recent Tether and TerraUSD downturns.
Availability of PYUSD
The PYUSD was launched on 7th of August and is now available for trade. Customers in the US possessing PayPal Balance accounts can anticipate its availability in the subsequent weeks. Moreover, PayPal’s sibling app, Venmo, is also gearing up to incorporate PYUSD soon.
PayPal and Cryptocurrency
PayPal’s venture into stablecoins aligns with its pre-existing crypto endeavors. Users can already buy, transfer, and sell popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin within the app. Further strengthening its crypto stance, PayPal acquired the New York BitLicense last year, facilitating crypto buying and selling for the state’s residents.
Technical Backbone of PYUSD
PayPal’s stablecoin, PYUSD, finds its foundation on the Ethereum blockchain. The responsibility of its issuance lies with Paxos Trust Company, a New York-based entity offering regulated blockchain frameworks. Notably, Paxos recently faced regulatory heat, leading to a halt in offering Binance’s BUSD cryptocurrency.
CEO’s Take on PYUSD
Dan Schulman, the president and CEO of PayPal, highlighted the shift toward digital currencies. In his words, “The trend demands a stable instrument that seamlessly bridges digital innovation with traditional fiat currencies like the U.S. dollar.”
Also read: JPMorgan Analysts Foresee Ethereum Surge with PayPal’s New Stablecoin Launch
How to buy PYUSD?
You can buy PYUSD within Paypal. PYUSD is not available on any other crypto exchange as of now, but Huobi has shown interest in listing PYUSD on its exchange soon.
Conclusion
PayPal’s stablecoin, PYUSD, symbolizes a significant leap in the confluence of traditional financial systems and evolving digital currency realms. As this stablecoin finds its footing, it promises to simplify transactions and further integrate digital assets into everyday transactions.