Paypal – one of the world’s leading payment platforms has announced the launch of its stablecoin. It is called PayPalUSD or simply PYUSD. This is a nice addition to the ever-growing list of crypto stablecoins like USDC, USDT (Tether), BUSD, DAI, TrueUSD, etc. PayPal USD is said to be fully backed by U.S. dollar deposits, Short-term US treasuries, and other similar cash equivalents and is redeemable for US dollar at a 1:1 ratio. PayPal USD is redeemable 1:1 for U.S. dollars and is issued by Paxos Trust Company
PayPal has always made provisions for crypto transactions, albeit with some technical restrictions. It was a deposit option for many crypto exchanges. Providing a window to convert your fiat to Paypal and then to cryptocurrencies where direct banking services were not allowed. With PayPal USD, crypto transactions within the PayPal Payment system and with other crypto platforms will be seamless.
Stablecoins are pivotal to the adoption of Cryptocurrencies as they bridge the gap between fiat currents and the very volatile cryptocurrencies. PayPal USD will improve the digital payment industry and encourage a better adoption of cryptocurrencies as a viable payment option. C.E.O Dan Schulman; noted at the launch of PayPal USD
“Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”
PayPal USD will be the only stablecoin supported within the PayPal Ecosystem.
What to Expect With PayPal USD Launch
PayPal USD is designed for Digital payments and for Web 3.0. It will transform your Paypal account into some sort of “mini-crypto” wallet as it allows easier integration with other crypto platforms.PYUSD will be compatible with Exchanges, Web 3.0 Apps, and Other Crypto Wallets
With Paypal USD, you will be able to perform the following transactions
Transfer – Users will be able to transfer the “traditional” PayPal and PayPal USD (PYUSD) and other compatible external wallets. This will be perfect for international remittances (when fully integrated)
Send – Do peer-to-peer transactions using PYUSD
Fund Purchases – with PayPal
Crypto Swap – Convert PayPal USD (PYSUD) and/from other supported cryptocurrencies.
The Current roll-out is restricted to US customers at the moment, there is little doubt we will see other versions for other currencies like the Euro and British Pound.
Key Take Away
PayPal with the launch of PYSUD stablecoin is making itself a leading Fintech company leading a cultural change in technology for the adoption of cryptocurrencies. It prides itself on providing a convenient, affordable, and secure payment system to drive commerce. PayPal is currently one of the only “not-traditionally crypto” fintech that affords its customers the platform to buy, hold, sell, and transfer supported cryptocurrencies. It is also providing educational content for a better understanding of the crypto ecosystem.