PayPal Launches Stablecoin
London: 14 August 2023 (TraderMade): Paypal is among the most popular payment applications worldwide, with 4.3 million active users. The brand realized the revolutionary change crypto can bring and launched cryptocurrency services in 2020. Users can buy, sell or pay in specific tokens, including Bitcoin.
With this latest launch of stablecoins, PayPal has shown that digital tokens are a reality. PayPal launches 'PayPal USD' (PYUSD) - issued by Paxos Trust Co. Similarly, the stablecoins are backed by US Dollar deposits, cash equivalents, and short-term treasuries.
This technological innovation will lead to instant and affordable transfers without an intermediary. PayPal plans to make it a part of infrastructure shortly.
Most importantly, stablecoins are not cryptocurrencies that gain or lose price based on many variables. Crypto prices may fluctuate based on asset holding and willingness to pay for the particular currency. As they are backed by a physical asset like gold or fiat currency like the US Dollars (in this case), we can expect a stable asset price in the long run.
Experts believe that there are $126 billion worth of stablecoins in circulation. However, these are mainly used for switching between exchanges by traders and investors. Yet, by launching the PayPal USD stablecoin, the popular payment application is ambitious to bring crypto tokens to consumer payments.
