It was January 10, 2022 when PayPal spoke of his plans in setting up a criptovaluta. In June of the same year, the company instead he did that four non-centralized digital coins could be "exchanged" within its circuit. Today, however, the online payment giant founded by Elon Musk has taken the decisive step: PYUSD, PayPal's US dollar-backed cryptocurrency makes its US debut.
PayPal enters the world of cryptocurrencies with PYUSD: a step forward in the digital payments sector
PayPal announced the introduction of a new stable cryptocurrency called PayPal USD (PYUSD). This digital token, tied to the value of the US dollar, represents a significant innovation in the cryptocurrency landscape. PYUSD offers us a new way to trade. We can use it for make payments between individuals, for online purchases and also for transfers between different digital wallets. Additionally, PayPal has made it possible to convert between PYUSD and other currencies supported by the platform.
Stable cryptocurrencies, such as PYUSD, are known to be pegged to traditional currencies like the dollar or the euro. This bond makes them less volatile compared to other cryptocurrencies, even if they are not risk-free, as demonstrated by some recent cases. PYUSD will be available soon to customers in the United States using Balance and PayPal accounts will also be introduced on the app Venmo, owned by PayPal.
PayPal's entry into the world of stable cryptocurrencies has been long overdue. The company has already enabled the buying, transferring and selling of several cryptocurrencies, including Bitcoin e Ethereum, and obtained a BitLicense in New York. PYUSD is based on Ethereum technology and is issued by Paxos Trust Company, a regulated entity based in New York. This move comes at a time when cryptocurrency regulation is in the spotlight globally.
Dan Schulman, president and CEO of PayPal, emphasized the importance of a stable and digitally native medium that can easily link to traditional currency, such as the US dollar.
