PayPal becomes first major fintech to launch dollar-backed stablecoin

[Smartprofit]

Yes, this is very positive news.  The new stablecoin is a token in the Ethereum cryptocurrency network.  This fact can increase the value and price of this cryptocurrency.  At the same time, the Ethereum cryptocurrency is the second coin in terms of capitalization. 

The growth of Ethereum will most likely lead to an increase in the price of bitcoin. 

The first cryptocurrency is sensitive to positive events in the crypto industry. 

At the same time, PayPal USD is a product of the old financial system.  In fact, this is a surrogate for the US dollar, which has a built-in option to block unwanted transactions and completely freeze funds. 

Yes, such positive news is good, but the best financial instrument for all of us is bitcoin, not the new stablecoin (which is censored by its creators).

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[Agbe]

Wow!! What a nice news. Just yesterday I was thinking of how use bitcoin to pay goods (shipping) from PayPal and now that they have started using stablecoins, I believe they will include bitcoin to it very soon. This is nice movement of the international transaction website/app.
I will be very happy to use it because there are some time I want to publish articles in international Journals but most of the journals websites are not accepting my country currency and also PayPal is not found. So it make things difficult for me. But I through this things will be easy for me now.

[stompix]

Apparently, in PayPal USD the issuer can enter an “asset protection mode” and “block” and “seize” assets.
In addition to that it can raise the max issued limit without any problems.
~
Well... what did you expect?

Well..indeed, what would one expect?

To release a full minable coin, completely decentralized, with a capped limit and still have it pegged to one dollar the coin?
How would this have worked with their business, how could they even implement such a thing, it's not like there is a guarantee that they will receive the same investment each day, there is no way to know if some would just get out of the system and demand their money back, how would you do that with a decentralized coin, you would send them to a coineater address and you would need to convince everyone those coins are indeed lost?

It's a business launching its won coin for its own benefit, if those things wouldn't have been there would have been even more suspicious of what scammy thing they are trying to pull.

I'm still amazed by the fact that they are planning to expand the whole crypto business and still allow you to withdraw your bitcoins, I was sure they were going to use some papal coins and you would have only numbers in your account not backed by anything yet they did surpise me with their take.

Long story short, this is as good as it will ever get!

[odolvlobo]

I wonder if Paypal's stablecoin is the motivation for this announcement today: https://www.coindesk.com/policy/2023/08/08/fed-starts-new-program-to-oversee-crypto-activity-in-us-banks/

[AmoreJaz]

I wonder if Paypal's stablecoin is the motivation for this announcement today: https://www.coindesk.com/policy/2023/08/08/fed-starts-new-program-to-oversee-crypto-activity-in-us-banks/

well, let us put it this way, FED or SEC or any other regulatory body will always lurk into this market especially if these projects are dealing with fiat currencies such as USD. so they just want to make sure everything is in order in terms of using the dollar in this market. for me, it is good as these companies like PayPal know that some eyes are on them, so they might want to back up what they are claiming here. like their USD reserves that they have to back their stablecoin. because without regulation, these companies can just create their own stablecoin without sufficient backing, right?

[Darker45]

While this has a huge potential considering that PayPal is already an established platform with hundreds of millions of users and tens of millions of merchants across the world, I don't see any reason why they have to do this. PYUSD could indeed grow big because PayPal processes tens of millions of transactions daily, but what specific advantages does this stablecoin really offer?

If a platform already offers USD, is it not superfluous or perhaps duplicity to offer another token representing USD?

[m2017]

While this has a huge potential considering that PayPal is already an established platform with hundreds of millions of users and tens of millions of merchants across the world, I don't see any reason why they have to do this. PYUSD could indeed grow big because PayPal processes tens of millions of transactions daily, but what specific advantages does this stablecoin really offer?

If a platform already offers USD, is it not superfluous or perhaps duplicity to offer another token representing USD?

To be precise, PayPal has over 430 million users. Even if at least 1-2% of users are interested in new PYUSD or even cryptocurrencies thanks to this novelty, then this will already amount to 4.3-8.6 million users. In my opinion, this event will at least serve as a good advertisement for the entire cryptocurrency industry and, most likely, will attract new users. When a major Internet banking PayPal provides a service to cryptocurrency-related clients, it must certainly induce ordinary users  to become interested in cryptocurrencies and encourage use.

I am not a stablecoin supporter and don't share the excitement that another centralized coin has appeared, but I think this news should have a positive effect on the industry and increase faith in cryptocurrencies.

[Renampun]

paypal is increasingly trying to make a profit, by releasing their own stable coin, I doubt this will go well because it's not easy to do this, besides that I also had a bad time with paypal before (frozen account) them surely it will be easy to do this on their token, there is no guarantee that it is safe to use a paypal token.

[KiaKia]

It's PayPal, almost everyone is using this service and they also entrust their dollar to Paypal, what difference doesn't it make if they block someone's address? They are known to be very strict right from day one, any human complaining about this now is stupid, this is a stablecoin anyway, not a new type of Bitcoin.

I believe the current smart contract is much harsh because it will burn the frozen asset which means it’s not recoverable while frozen paypal account can be recover by followinf the help center resolution. Owning the pyUSD especially those whale will need to think twice because Paypal can freeze their assets and burns it.

I'm not sure how will Paypal deal with recovery on burn tokens but it's worst if the owner doesn't recover it.

Let's not jump into conclusion yet, I am sure this will have some dos and don't when they stable coin is in action, this same headache like you feel because of the burning of freeze asset is what many whales will be aware about, so I believe there will be some rules and regulation about this, that's if truly PayPal wants smart adoption for their stable coin, we will see what they throw at their users face as time goes on.

I have doubts that this will go well too but at least it will expand the awareness of crypto to other payment solutions out there, I know PayPal is trying to make money out of this but I am concentrating more on the benefits it will bring for Bitcoin and the whole blockchain ecosystem.

[Yamane_Keto]

Isn't Paxos Trust Co the same company that issued Binance USD (BUSD) and which issued a decision from the New York State Department of Financial Services (NYDFS) Follow the rest of the news from here https://www.binance.com/en-IN/feed/post /216379

What makes the authorities now allow PayPal what was forbidden to Binance despite the great similarity between both assets.
Also, after Moody's lowered the credit rating of the United States, he was surprised at the type of assets that would be taken to liquidate assets, would it be US Treasury bonds.

I see it as an attempt by them to collect some liquidity, especially since many will sell their bitcoins in exchange for stable currencies when the price of bitcoin rises and it will not be a future policy.

[davis196]

I have not used PayPal however with the feedbacks I have read on social media platforms, they do not seem to be in the good light of the public due to their terms of service, of fining customers $2500 for saying things that they do not agree with. They deducted this money from their bank account. Some old customers are saying if they did this to them and so why should they trust them with their newly launched stablecoin? Well, as much as this sounds good, I think that the US regulators may in the future come for them just as they did with UDSC and Binance USD because they don't want on-shore stable coin.

Paypal is notorious for having bad customer service(especially if you are an online business owner accepting Paypal payments).
The people, who are using Paypal to buy stuff online are in a little bit better position, until Paypal doesn't find a BS reason to lock their accounts as well. I'm not a fan of Paypal and I'm no fan of stablecoins either, so I couldn't care less about such news.
Good luck to Tether and the other "crypto" stablecoins against the financial hydra that is Paypal.

[btcfilmmaker]

Twitter is mad at the following:

https://www.talkimg.com/images/2023/08/08/GyYrG.jpeg

Apparently, in PayPal USD the issuer can enter an “asset protection mode” and “block” and “seize” assets.
In addition to that it can raise the max issued limit without any problems.

A lot of criticism about these features: “Bitcoin has fixed max issuance”, “Not your Keys, not your coins", "transaction censorship!" "centralisation attack vector!"


Well... what did you expect?
If PayPal just wanted a cheap, reliable, censorship-resistant way of allowing their customer to transfer economic value, they would have implemented... Lightning.

Yeah that's the thing I saw.

Double edged sword, good for overall adoption of the masses but bad in terms of important values. But then again, I think eventually everyone will fall into Bitcoin, the more you learn and use other services then see their flaws, the more BTC draws you in.

[fillippone]

Well, you do realize that PayPal is a fully "official" payment system, plus a high-tech one, and is obliged to comply with ALL legislation.

I do perfectly realise. For this reasons I was surprised when I saw all this buzz on Twitter. I guess it was a pretty trivial to understand that.

Anyway something must really be changed recently, if the FED has stated a few rules for Banks to exchange, hold and even issue stable coins :

US Fed clarifies process for banks to transact in stablecoins

This kind of openness from the regulators, took me by suprise, also given the amount of scrutiny at the US banks have been subject to recently.

[Darker45]

While this has a huge potential considering that PayPal is already an established platform with hundreds of millions of users and tens of millions of merchants across the world, I don't see any reason why they have to do this. PYUSD could indeed grow big because PayPal processes tens of millions of transactions daily, but what specific advantages does this stablecoin really offer?

If a platform already offers USD, is it not superfluous or perhaps duplicity to offer another token representing USD?

To be precise, PayPal has over 430 million users. Even if at least 1-2% of users are interested in new PYUSD or even cryptocurrencies thanks to this novelty, then this will already amount to 4.3-8.6 million users. In my opinion, this event will at least serve as a good advertisement for the entire cryptocurrency industry and, most likely, will attract new users. When a major Internet banking PayPal provides a service to cryptocurrency-related clients, it must certainly induce ordinary users  to become interested in cryptocurrencies and encourage use.

I am not a stablecoin supporter and don't share the excitement that another centralized coin has appeared, but I think this news should have a positive effect on the industry and increase faith in cryptocurrencies.

Although this new feature isn't available yet to each and every PayPal user, yeah, even a small percentage of that 430 million users is already a big deal. Other than this figure, PayPal merchants are now more than 35 million. All in all, the platform processes an average of more than $315 million payments a day in more than 5 million transactions. These are large figures, especially if we compare them with the 26,905,005.66 PYUSD they minted. We should be expecting much more PYUSD in the days to come.

In the name of crypto, this might be good in a way. But I don't see this as the kind of adoption that significantly benefits Bitcoin. A centralized coin in a centralized platform. Far from what Satoshi envisioned. 

[rikybrosh]

it seems that many people realize the benefits of using cryptocurrency. but I thing Paypal should do more than that, there many stable coin out there, so what makes their cryptocurrency is better or even differ with the others. but i am so grateful that more people start to embrace cryptocurrency.

[dothebeats]

PayPal is good, in fact it is great. With its well established history and millions of users you can say that it can be trusted by many. However, recently I have been reading a lot of negative feedback from PayPal users. Not sure how much these negative experiences can affect such development from PayPal but I guess we'll just have to see.

[Synchronice]

A stablecoin created and backed by PayPal can easily outperform any other stablecoin that's available on market because PayPal is one of the most experienced and trusted financial company in online payments. PayPal can actually back each stablecoin with each USD, it has an experience in money transfer while Tether is a very shady company and I believe if everyone were to redeem their Tether for USD, it would immediately go bankrupt. BUSD won't manage to win stablecoin war.

By the way, can anyone explain to me, why do we need stablecoins? I would use stablecoin similar to Bitcoin but with stable price where I'll be able to use open-source stablecoin[name] wallet software to own it like I own bitcoin. Otherwise, for trading and storing purposes, isn't it just better to trade with Coin/USD pair instead of USDT and other bullshit?

[joniboini]

Otherwise, for trading and storing purposes, isn't it just better to trade with Coin/USD pair instead of USDT and other bullshit?

For trading, stability is probably one of its benefits. If a trader uses multiple platforms, a stablecoin can also help them transfer funds easily without losing too much purchasing power assuming everything is done correctly. Obviously, this benefit doesn't outweigh the risk of being locked out or wiped by the controller of the smart contract (which is also present in the Paypal stablecoin, afaik). For Paypal though, it is one of the easier ways to appeal to crypto users and allows its regular customers to enjoy faster transaction speed while at the same time having more control over it. CMIIW.

[Rikafip]

PayPal is good, in fact it is great.

PayPal was never good or great, they were simply useful back in the day when we didn't have any other options. Luckily, that's not the case at them moment so I honestly see no reason why would someone use them, especially those that are into crypto given what PayPal did to it's users which tried to buy crypto in the past.

Nevertheless, PayPal continues it's role of a useful idiot.

[m2017]

PayPal is good, in fact it is great.

PayPal was never good or great, they were simply useful back in the day when we didn't have any other options. Luckily, that's not the case at them moment so I honestly see no reason why would someone use them, especially those that are into crypto given what PayPal did to it's users which tried to buy crypto in the past.

Nevertheless, PayPal continues it's role of a useful idiot.

But the days when we had no other options are long gone, and now it is not at all a problem to find alternatives instead of PayPal.

It's not that someone has to use PayPal to interact with cryptocurrencies, but that among their multimillion user base there is bound to be someone who wants to do it: people far from crypto, housewives or retirees. That is, those who are too lazy to delve into the peculiarities of cryptocurrencies, don't want to or can't for one reason or another. For such users, convenience and habits are more important - if a platform that has been used for many years provides services related to crypto, then why look for interaction with cryptocurrencies somewhere outside of it. No doubt they will use PYUSD. It's not good or bad, it just happens.

With regard to the role of the PayPal, you are right on target. More eloquent than you, no one else will say.