Stablecoin

Ignite

Bitcoin

Apple

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
  Neither the author, Ruholamin Haqshanas, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions. 
</div> 
<p class="has-drop-cap">PayPal’s decision to launch its PYUSD stablecoin marks a significant development in the crypto industry. With a vast user base and the potential for wide merchant adoption, PayPal’s stablecoin project could contribute to the widespread acceptance and use of crypto payments.&nbsp;</p> 
<div class="tve_content_lock tve_lock_hide tve_lead_lock"> 
 <div class="tve_lead_lock_shortcode"></div> 
 <div class="tve_lead_locked_content"> 
  <div class="tve_lead_locked_overlay"></div> 
  <h3 id="paypal-s-pyusd-is-different-from-facebook-s-failed-diem-project">PayPal’s PYUSD is Different From Facebook’s Failed Diem Project</h3> 
  <p>The demand for stablecoins has substantially increased in the cryptocurrency market over the past few years. These digital currencies aim to maintain a stable value by being pegged to real-world assets such as T-bills and bank deposits.&nbsp;</p> 
  <p>While this approach has proven successful, there is potential for an equity-backed stablecoin that could be even more effective. Imagine a stablecoin backed by the equity of a well-established company like Apple. Since Apple will always hold value, the stablecoin would always have a guaranteed value of $1.</p> 
  <p>Despite the market’s interest in equity-backed stablecoins, regulators hesitate to embrace this concept. This hesitation stems from concerns about Big Tech companies infringing on the government’s control over currency issuance and competing with traditional banking systems.&nbsp;</p> 
  <p>The recent rejection of Meta’s proposed stablecoin, Diem, can be attributed to these concerns, even though it was fully reserved with cash and Treasurys. Another reason behind the rejection of Facebook’s stablecoin stemmed from the&nbsp;<a href="https://tokenist.com/why-congress-doesnt-trust-facebook-with-novi/" rel="noopener noreferrer nofollow" class="deco-link">lack of regulators’ trust in the tech giant</a>.&nbsp;</p> 
  <p>However, these issues are not ostensibly true about PayPal. There is growing optimism that PayPal, a renowned global payment platform with 420 million users, will use its&nbsp;<a href="https://tokenist.com/paypal-to-launch-stablecoin-backed-by-us-dollar-deposits-and-t-bills/" rel="noopener noreferrer nofollow" class="deco-link">stablecoin, backed by T-bills and cash</a>, approved by regulators.&nbsp;</p> 
  <p>The approval of PYUSD raises the question of why the government would support PayPal’s stablecoin while rejecting Diem. Possible reasons range from PayPal’s better know-your-customer (KYC) practices to its prominent role in the financial industry.</p> 
  <div class="cta-referral"> 
   <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
   <div class="cta-referral__text"> 
    <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noopener noreferrer nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
   </div> 
  </div> 
  <h3 id="paypal-s-stablecoin-is-huge-for-the-crypto-market">PayPal’s Stablecoin is Huge For the Crypto Market</h3> 
  <p>The launch of PayPal’s stablecoin could be significant for the future of cryptocurrencies, opening up new opportunities and&nbsp;<a href="https://tokenist.com/huobi-rushes-to-list-paypals-stablecoin-amid-substantial-outflows/" rel="noopener noreferrer nofollow" class="deco-link">potential for widespread adoption</a>.&nbsp;</p> 
  <p>PayPal alone has 420 million users. And if a meaningful portion of the company’s user base embraces its stablecoin for low-fee transactions, merchants will follow suit, which could further drive crypto adoption and the use of digital assets for payments.&nbsp;</p> 
  <p>Brazil’s Pix system provides a real-life example of how quickly stablecoin adoption can happen. Launched in 2020, Pix has&nbsp;<a href="https://www.fintechnexus.com/in-two-years-pix-became-the-most-used-means-of-payment-in-brazil/" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">become </a>Brazil’s most used means of payment in less than two years.&nbsp;</p> 
  <p>If PayPal’s stablecoin gains traction, a similar trend could emerge globally. In&nbsp;a recent interview&nbsp;with Bloomberg, Jose Fernandez da Ponte, senior vice president of PayPal’s blockchain, crypto, and digital currencies, also expressed hope that the company could use its network to drive the adaption of its stablecoin.</p> 
  <p>“One of the places where we think we will be differential and where we can add value is that we bring that connectivity to that last mile through the network that we have built over the years,” Fernandez da Ponte said.</p> 
  <p>However, the US government will probably not allow tech companies to monopolize the payments system. Hence, if they permit Big Tech to issue stablecoins, approval for bank-issued stablecoins will likely follow suit.</p> 
  <p>Allowing banks to issue stablecoins could pave the way for tokenized deposits, representing the next logical step in the evolution of digital currencies, which could also benefit cryptocurrencies like Bitcoin and Ethereum.</p> 
  <div class="cta-sub js__cta-sub"> 
   <div class="cta-sub__start" data-step="1"> 
    <div class="cta-sub__title"> <strong>Finance is changing.</strong> 
    </div> 
    <div class="cta-sub__subtitle">
      Learn how, with Five Minute Finance. 
    </div> 
    <div class="cta-sub__excerpt">
      A weekly newsletter that covers the big trends in FinTech and Decentralized Finance. 
    </div> <button type="button" class="btn">Try it out (for free)</button> 
   </div> 
   <div class="cta-sub__form" data-step="2" style="display: none;"> 
    <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=hpcwd"></script> 
   </div> 
   <div class="cta-sub__result" data-step="3" style="display: none;"> 
    <div class="cta-sub__title">
      Awesome 
    </div> 
    <div class="cta-sub__caption">
      You’ve subscribed. 
    </div> 
    <div class="cta-sub__greeting">
      You’re well on your way to being in the know. 
    </div> 
   </div> 
  </div> 
  <p><strong><em>Do you think PayPal’s stablecoin could become the next big development in the crypto space? Let us know in the comments below.&nbsp;</em></strong></p> 
  <p></p> 
 </div> 
</div> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/how-paypals-stablecoin-and-its-420m-users-can-ignite-crypto-payments-growth/">How PayPal’s Stablecoin and its 420M Users Can Ignite Crypto Payments Growth</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

How PayPal’s Stablecoin and its 420M Users Can Ignite Crypto Payments Growth

Table of Contents

Tokenist

Other articles published on Aug 9, 2023

Two Cardano (ADA) Pairs Delisted on Major Exchange Following XRP Removal

Cara Menggunakan AI untuk Pantau Gerakan ETH

XRP Price Fails to Reach Anticipated Levels Despite Favorable Court Ruling

Amazon to Unlist AI Written Books After Friedman Disclosure

Walmart Stock Price Prediction: Results Awaiting, Short Or Long?

Despite the Merge, ETH/BTC Trend Shows No Signs of a ‘Flippening’ Yet Says Benjamin Cowen

Join our free newsletter for daily crypto updates!