On Monday we received news that the multinational financial technology company PayPal will be launching their own stablecoin. That means that PayPal is now the first major financial technology firm in the FIAT sphere to embrace digital currencies with its move. The news lifted its shares for 2.66% during the day, something that we can assume is because of the confidence there is in cryptocurrencies right now. Despite all the different ways regulations are trying to put a foot in the door and collapses of for example FTX. Events that have impacted the markets negatively. Very recently another company in the same field, Revolut, announced that they will stop with their cryptocurrency services in the US. But PayPal seems to go the opposite way.
Paxos, which is regulated by the New York State Department of Financial Services, is supposed to be the issuer of the PayPal USD (PYUSD). The stablecoin will be redeemable one to one for USD. PayPal stated this in their press release regarding PYUSD:
"Transfer PayPal USD between PayPal and compatible external wallets
Send person-to-person payments using PYUSD
Fund purchases with PayPal USD by selecting it at checkout2
Convert any of PayPal's supported cryptocurrencies to and from PayPal USD"
A lot of people are still remembering how TerraUSD imploded last year and it has affected the trust for these. But now PayPal will try the waters by launching a new stablecoin. Will the cryptocurrency community really embrace this, or see it as a use of blockchain technology that goes against the philosophy of decentralisation and freedom from financial institutions?
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