Stablecoin

PayPal USD

The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/news/us-lawmaker-expresses-major-concerns-with-paypal-stablecoin-launch/">US Lawmaker Expresses Major Concerns With PayPal Stablecoin Launch</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a> 
On Monday, PayPal made a <a href="https://www.prnewswire.com/news-releases/paypal-launches-us-dollar-stablecoin-301894262.html" rel="noopener noreferrer nofollow">bold announcement</a> about the launch of a stablecoin named PayPal USD (PYUSD), which is linked to the value of the U.S. dollar. Since the launch of its stablecoin Paypal has garnered a fair amount of criticism. 
<h2 id="congresswoman-waters-raises-concern-over-paypals-pyusd-launch" data-name="congresswoman-waters-raises-concern-over-paypals-pyusd-launch" class="wp-block-heading">Congresswoman Waters raises concern over PayPal’s PYUSD Launch.</h2> 
In a press release on Wednesday, August 9th, Rep. Maxine Waters, the leading Democrat on the House Financial Services Committee (HFSC), has <a href="https://democrats-financialservices.house.gov/news/documentsingle.aspx?DocumentID=410725" rel="noopener noreferrer nofollow">expressed substantial</a> security concern over PayPal’s introduction into the dollar-pegged stablecoin sector.&nbsp; 
Further suggested that the company should have waited for official regulatory approval at the federal level before launching its initiative.&nbsp; 
While in her <a href="https://democrats-financialservices.house.gov/news/documentsingle.aspx?DocumentID=410725" rel="noopener noreferrer nofollow">written statement</a>, Waters stated, “ 
<blockquote class="wp-block-quote"> 
 “I have significant misgivings about PayPal’s decision to introduce its own stablecoin without the existence of a comprehensive federal regulatory framework. “Given PayPal’s size and reach, Federal oversight and enforcement of its stablecoin operations is essential to guarantee consumer protections and alleviate financial stability concerns”. 
</blockquote> 
Waters emphasized the importance of PayPal’s influence, noting that the company boasts a customer base of 435 million globally, surpassing the collective count of online accounts held by major banks.&nbsp; 
In her remarks, she emphasized the importance of federal supervision and enforcement of regulation regarding PayPal’s stablecoin operations. According to Waters, these measures are necessary to assure consumer protection and shed concerns related to financial stability. 
<h2 id="paypals-foray-into-growing-stablecoin-arena" data-name="paypals-foray-into-growing-stablecoin-arena" class="wp-block-heading">PayPal’s Foray into Growing Stablecoin Arena</h2> 
Recently a known research firm called Bernstein <a href="https://coinpedia.org/news/bernstein-forecasts-nearly-3-trillion-surge-in-stablecoin-market-over-next-5-years/" rel="noopener noreferrer nofollow">made a projection</a> about the stablecoin market. Their report suggests that the market is on track to experience growth reaching an estimated value of $2.8 trillion in the five years. This projection represents a 22fold increase from its current valuation of $125 billion. 
According to Gautam Chhugani, a cryptocurrency analyst, major financial and consumer platforms are planning to introduce branded stablecoins in the near future. This emerging trend presents an opportunity for PayPal to establish itself in this developing stablecoin market. 
By entering this market PayPal will directly compete with established players such as Tether (USDT) and Circle (USDC) within the $125 billion industry. 
Paolo Ardoino, Chief Technology Officer at Tether came forward to share his perspective on PayPals entry into the stablecoin arena. He believes that it might not pose a threat to their USDT. Arduino pointed out that although PayPals PYUSD seems to target the US market Tethers USDT has already gained traction in emerging markets. 
Interestingly PayPal’s presence could potentially challenge Circle’s dominance with its USDC stablecoin, which has already made its mark as a player, in the US market. With the growth of the stablecoin market participants, in the industry are preparing for competition.

US Lawmaker Expresses Major Concerns With PayPal Stablecoin Launch

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