PayPal to roll out Cryptocurrencies Hub for select users

PayPal to roll out Cryptocurrencies Hub for select users | The Enterprise World

Launching a brand-new coin could seem dangerous given the continuous ambiguity surrounding how stablecoins should be audited and the disclosures and reporting that should go along with these instruments. That may be the case, but PayPalPYPL -2% has already acted in this manner.

On August 7th, Paypal revealed that it would introduce its own native stablecoin (PYUSD) for usage in business and consumer transactions. On the surface, this would seem like a strange decision for a corporation whose primary function is processing fiat transactions, but it ignores the fact that PayPal has been actively participating in the cryptocurrency space for a long time.

PayPal first allowed consumers to buy and sell specific select crypto assets on the platform through agreements with the crypto industry dating back to 2014; this then developed into allowing certain payments to be made in these specific select crypto assets.

fundamental change in how data is conveyed between two or more parties

Unfortunately for bitcoin maximalists, crypto assets and the tokenization of financial instruments are less about one particular currency and more about a fundamental change in how data—both financial and non-financial—is conveyed between two or more parties.

According to research by Codex, the total value of stablecoin transactions will reach $130 billion in 2023. Additionally, institutions and nation-states are showing an increased interest in asset-backed tokens, suggesting that this type of instrument will likely become the mainstay of mainstream cryptocurrency payments. Nevertheless, each cryptocurrency asset is distinct and should be evaluated on its own merits. Let’s examine PYUSD and the considerations that investors should make as this narrative evolves.

The rippling effects that PYUSD will have on the overall crypto regulatory landscape may be more significant than the token itself as one of the most potent consequences of PYUSD. The introduction of PYUSD by one of the most well-known and widely utilized financial payment processors in the world may provide regulators with the push they need to take action on stablecoin legislation in the context of institutional crypto.

PayPal to roll out Cryptocurrencies Hub -BTC, SHIB, UNI, MKR, XDC update

Address many of the drawbacks and problems

With the recent focus on stablecoins and the dozens of bills that have been presented but never passed over the previous few years, this event might offer lawmakers a project that is too significant to pass up.

According to press releases and other material released by the company, PYUSD appears to address many of the drawbacks and problems that have previously characterized other stablecoins, namely a restricted set of use cases. Users can send and receive PYUSD between PayPal and other wallet providers as well as utilize it to fund transactions made through PayPal checkout. Users of PayPal will also be able to convert between PYUSD and other currencies that PayPal supports.

Last but not least, PYUSD is fully backed and convertible into US dollars at a 1:1 ratio. Given the crucial role PayPal plays in electronic payments, all three characteristics together 1) make logic, and 2) demonstrate the product’s robustness.

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