PYUSD a.k.a Paypal USD

[Yogee]

They launched their own stablecoin which is called PYUSD as indicated in the title and it's issued by Paxos.

It's supposed to maintain a $1USD value and backed up by the following:
- Dollar deposits
- US treasuries
- Cash equivalents.

Thoughts on this? I'm not a Paypal user so I don't see the benefits of using this over USD yet. Are conversion rates supposed to be higher or trade fees become lower for PYUSD pairs?

https://www.paypal.com/us/digital-wallet/manage-money/crypto/pyusd

PYUSD has already been listed on some major exchanges such as Coinbase and Kraken in case you're interested. The current circulating supply according to CMC is at 44,376,440 - https://coinmarketcap.com/currencies/paypal-usd/

It probably won't be long before other exchanges will list it. Expect the supply to also increase so entering the top 10 is only a matter of time.

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[X-ray]

It's supposedly to be a very beneficial for crypto users who have paypal account as they can now start to cash out their money directly to their paypal account. This is also boosing the adoption from the crypto.
We have known so well if paypal has a lot of users. It will be also indirectly promoting crypto. That's gonna be a real competitor for USDT.

Paypal must fully disclose their practices and comply with regulations. PYUSD will be ethereum based token.

I think that so many people will be using it rather than USDT as it's backed by clear entities that's fully transparent. Im waiting for major exchange sites to add it. This news is good since paypal had 426 million users.

Starting today and rolling out in the coming weeks1, eligible U.S. PayPal customers who purchase PayPal USD will be able to:

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 

https://newsroom.paypal-corp.com/2023-08-07-PayPal-Launches-U-S-Dollar-Stablecoin

[gabbie2010]

They launched their own stablecoin which is called PYUSD as indicated in the title and it's issued by Paxos.

It's supposed to maintain a $1USD value and backed up by the following:
- Dollar deposits
- US treasuries
- Cash equivalents.

Thoughts on this? I'm not a Paypal user so I don't see the benefits of using this over USD yet. Are conversion rates supposed to be higher or trade fees become lower for PYUSD pairs?

https://www.paypal.com/us/digital-wallet/manage-money/crypto/pyusd

I also read the news on CoinMarketCap where it was stated that PayPal will utilize Ethereum network for transaction of PYPAL, however my reservation is on the high cost of gas when transacting with Ethereum network did PayPal consider that before reaching an agreement to utilize that network?  I also read another news where Tron founder was also ready to offer PayPal their own network because of it low cost of transaction link: https://en.bitcoinsistemi.com/justin-sun-suggests-tron-trx-network-to-paypal-for-its-stablecoin-launch/
I think this a welcome development for remote workers who uses PayPal as their payment gateway will now receive their wages in form crypto this will ease the problems of exchanging their earned wages from Paypal to cryptocurrencies.

[Hispo]

Quite ironic, considering Paypal initially was very skeptical on Bitcoin and Blockchain Technology in general.  

Anyways, this is good and bad news at the same time, on one hand this will indeed prompt the acceptation and use of cryptocurrency even further and faster, Paypal (whether we like it or not) has a ton of clients world wide.

On the other hand, I don't have any doubt in mind this new stablecoin will be somehow centralized, Paypal will reserve the rights to make void coins gathered from illegal activities and won't guarantee full redentions for everyone.

It is also strange that Paxos is doing this move with Paypal, keeping in mind they still have an unsolved lawsuit coming from the SEC. The BUSD case.

[bitbollo]

Centralized tokens to be used in a centralized blockchains. The opposite of crypto evolution.
I am not using paypal since 10 years now. vast majority of transactions are done just with bitcoin. Others are managed with direct card payment (not reversible).
I am not missing their service and their horrible ToS.

[Xal0lex]

Anything to do with PayPal gives me a bad thought. PayPal is notorious for blocking funds as well as increased censorship of transactions. Stablecoin, which is linked to PayPal, may also have the same features. It is possible that we may see individual addresses with these coins being subject to blocking for various reasons in the future.

[o48o]

-cut-
Thoughts on this? I'm not a Paypal user so I don't see the benefits of using this over USD yet. Are conversion rates supposed to be higher or trade fees become lower for PYUSD pairs?

https://www.paypal.com/us/digital-wallet/manage-money/crypto/pyusd

Well technically one benefit of it would be that you can change crypto in defi and use pegged currency instead of reaal usd and skip the bank transactions. This is a clear middle finger to bank transactions...
They say it's ERC-20 in eth network. So what i am wondering is if they are going to use layer to like arbitrum or polygon for moving it? I would personally love this idea. Because there's no crypto payment options for paypal in where i live, so i would definitely have use for this.

[Bitcoin_Arena]

Nothing exciting here. Just another profit focussed entity aiming to disrupt people from using actually using decentralized cryptocurrencies. I have never used PayPal before, and I doubt I will ever use it, especially when I have other better alternatives. Obviously, my first choice is Bitcoin.

[cryptoaddictchie]

Not sure though since Paypal has some bad feedback but since some of ym friends ar eworking and got paid in paypal they said that this wipl be beneficial to them as they can use directly for crypto trading and other platforms but actually prefer the hassle free of some like Binance and other platform that can cater my needs too.

[GreatArkansas]

We already have a lot of problems with Paypal, now they are entering cryptocurrencies.
The first thought for me is they chose a good network which Ethereum network (and for sure later on they will support multiple layer-2 networks).

For me, their goal of having stablecoin is kinda good because Paypal is a well-reputable company in the financial market since before.

(.....)
It is also strange that Paxos is doing this move with Paypal, keeping in mind they still have an unsolved lawsuit coming from the SEC. The BUSD case.

This is the only problem I can see, we already saw the problem of BUSD and Paxos

I hope Paypal will able to manage this.

[LogitechMouse]

I don't know if it's just me who have this feeling, but I guess we have a time in the past where people are speculating about Paypal entering into cryptocurrency that made the price of Bitcoin spike up just because of that rumor? Correct me if I'm wrong with this one, but if this turns out to be true... then nobody cares already unlike what it was a few years ago.

Overall, nothing very surprising TBH. I'm not using Paypal anyway, and will not use it at all. Well, those Paypal users that are using crypto are the ones who will benefit the most in this one I guess especially those freelancers who wants to get paid into crypto, but it just released a few days so let's see if this will gain traction, or it will be beneficial to both the crypto users, and the Paypal users.

Also I saw this topic coming from a users, and it says that there is a code in the system where they can just freeze your assets: https://bitcointalk.org/index.php?topic=5462423.0
I'm not a programmer, but if this true then this is an early red flag already.

[DapanasFruit]

I am seeing this to be a good move on the part of PayPal as it can be really serious in carving its name in the world and market of cryptocurrency. I had been a PayPal user back in the days when it was the best way to cash in and cash out money outside of my country though am not so active on it right now. Having its own stablecoin can certainly make things a lot more convenient for anyone under the PayPal umbrella. So let's welcome a newborn stablecoin under a "prestigious" and solid organization and let's hope it will not have many issues associated with USDT.

[adaseb]

As much as I don’t like PayPal, I think this stablecoin of theirs will be successful. Why? Because besides USDC what other alternatives are there that people trust?

There is always tether fud. The Luna was a scam. BUSD is getting shutdown. And TUSD is very sketchy. So many will opt for PayPal’s stablecoin because they trust them more than the alternatives.

[Apocollapse]

Quite ironic, considering Paypal initially was very skeptical on Bitcoin and Blockchain Technology in general.  

It is also strange that Paxos is doing this move with Paypal, keeping in mind they still have an unsolved lawsuit coming from the SEC. The BUSD case.

Paypal was started to accept Bitcoin and they didn't allow to send to other wallet, this make no one interested and they allow to send to other wallet after next few months. Now they want to launch their own stablecoin, pretty sure they want to make more money without need to depend on USD.

Yeah it seems the news about lawsuit to BUSD is slowly dying since BUSD price is still fine, maybe due to big Binance's reputation. If Paxos can't defend BUSD's case, then it's a mistake by PayPal to trust them.

[Hispo]

Quite ironic, considering Paypal initially was very skeptical on Bitcoin and Blockchain Technology in general.  

It is also strange that Paxos is doing this move with Paypal, keeping in mind they still have an unsolved lawsuit coming from the SEC. The BUSD case.

Paypal was started to accept Bitcoin and they didn't allow to send to other wallet, this make no one interested and they allow to send to other wallet after next few months. Now they want to launch their own stablecoin, pretty sure they want to make more money without need to depend on USD.

Yeah it seems the news about lawsuit to BUSD is slowly dying since BUSD price is still fine, maybe due to big Binance's reputation. If Paxos can't defend BUSD's case, then it's a mistake by PayPal to trust them.

I think Paypal did not allow people to send BTC to external wallets because it would be more of a hassle to them to have such mechanisms and also compete against other more established exchanges. All they want is to hold Bitcoin and allow people to speculate on it, without leaving their own pockets. Also, it keeps Paypal in good terms with regulators.

The BUSD case and the fact it has not decreased in value has more to do with the strong backing Paxos has, rather than how good or bad the lawsuit is going for that company.

The fact Paypal decided to go together with Paxos, makes me assume Paypal does not think his token would ever be tagged as an unregistered security

[Ultegra134]

As much as I don’t like PayPal, I think this stablecoin of theirs will be successful. Why? Because besides USDC what other alternatives are there that people trust?

There is always tether fud. The Luna was a scam. BUSD is getting shutdown. And TUSD is very sketchy. So many will opt for PayPal’s stablecoin because they trust them more than the alternatives.

I was just about to post this. To be honest, I'm not surprised that they're entering the cryptocurrency world. Quite a few years ago, they were against them at first, then they integrated coin purchases into their platform, and now they're launching their own stablecoin. Not surprising if you ask me. On the one hand, I'm not too fond of major financial corporations entering the cryptocurrency world, but on the other hand, there will finally be a competitor for USDT, in which FUD and rumors are always circulating.

I see plenty of negative feedback for PayPal; however, I've been a regular user of PayPal and eBay and never faced any major issues. I don't use them as regularly as I used to, but I still occasionally prefer them for purchases due to the safety they provide, at least for buyers. I've heard quite a few stories of users abusing their chargeback function in order to receive goods and services for free.

[livingfree]

I am using them once in a while and having that own stable coin of theirs could also be the next one in demand like the Tether and exchanges stable coins such as USDC and BUSD.

Well, IMO, they're just going with the flow and they're actually hit with the trend of crypto if they're not going to do any significant action and adoption with what's happening.

So the prophesy of many people from the community have probably said it before to companies like them in a quote, "If you can't beat them, join them".

[raidarksword]

Definitely a good indications for the crypto industry, this is a good news as well wherein it can create a market trend that leads to good recovery somehow for the market right now. We will know paypal is a e-payment giant that's why this adoption will be big for the crypto industry.

[vv181]

This is just a general warning in case anyone is interested in this project, beware that there are many scammer and imposters trying to scam while riding this hype. There are some fake tokens and also people scamming using fake information relating to this project.

Quite ironic, considering Paypal initially was very skeptical on Bitcoin and Blockchain Technology in general.  
~

Money-making scheme potency knows no irony. If the market is lucrative there always be someone trying to profit it off. The market has a standstill and shows an opportunity for a company to make a profit. Now many entities trying to seize it.

Bear in mind that Michael Sayloy once bash Bitcoin before his company excessively invested in it. It also happens with BlackRock, they once got scepticism, but now they trying to get the BTC ETF fillings. Those examples only contain Bitcoin, but generally, there will always be a way to profit off from the whole cryptocurrencies markets. So I'm not surprised in the future, when the market became more mature, there will be someone who changes their opinion and stance toward this space.

[Yogee]

[....]however my reservation is on the high cost of gas when transacting with Ethereum network did PayPal consider that before reaching an agreement to utilize that network? I also read another news where Tron founder was also ready to offer PayPal their own network because of it low cost of transaction link: https://en.bitcoinsistemi.com/justin-sun-suggests-tron-trx-network-to-paypal-for-its-stablecoin-launch/

USDT transfers on the ethereum network is still high despite the gas fee so that's probably one of the major reason why they still pushed for it instead of using other chains with lower transaction fees.

I think this a welcome development for remote workers who uses PayPal as their payment gateway will now receive their wages in form crypto this will ease the problems of exchanging their earned wages from Paypal to cryptocurrencies.

Provided their client agrees to the mode of payment. It wouldn't matter much to them if otherwise.

[...]
Well technically one benefit of it would be that you can change crypto in defi and use pegged currency instead of reaal usd and skip the bank transactions. This is a clear middle finger to bank transactions...
They say it's ERC-20 in eth network. So what i am wondering is if they are going to use layer to like arbitrum or polygon for moving it?

I think they will explore those options but that will probably take a back seat for now.

I would personally love this idea. Because there's no crypto payment options for paypal in where i live, so i would definitely have use for this.

Paypal considers stable coin as cryptocurrency though so I'm not sure if they would make an exception for PYUSD.

[....]Also I saw this topic coming from a users, and it says that there is a code in the system where they can just freeze your assets: https://bitcointalk.org/index.php?topic=5462423.0
I'm not a programmer, but if this true then this is an early red flag already.

I mean we're talking about Paypal here so that shouldn't come as a surprise. It would be foolish to think that it's decentralized. I was just looking at the benefit for using it in their platform.