PayPal Just Announced Plans to Launch a USD Stablecoin - Thoughts?

[cyrilmorris]

It's official - PayPal has revealed their plans to roll out a new US dollar-backed stablecoin. You can read the announcement here:

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

This is big news in the cryptocurrency space. Having a major brand like PayPal issue a stablecoin could help drive mainstream adoption.

What impact do you think this move could have? Some potential implications:

- Millions of existing PayPal users will have exposure to cryptocurrency benefits 

- It could expand access to faster and cheaper payments, especially for remittances

- PayPal would be well-positioned to provide crypto lending services to users

- It could accelerate the use of stablecoins for e-commerce and other digital transactions

- But regulatory uncertainty remains around stablecoins

Do you think this will be a landmark development for crypto going mainstream? Or is the potential overhyped? Share your thoughts and predictions!

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[rat03gopoh]

- Millions of existing PayPal users will have exposure to cryptocurrency benefits 

It's not the first type of stablecoin issued by a private company as a standout benefit, especially which I've learned in a while, the PP version of a stable coin is gonna be very centralized. I think it's just a representation of the PP service with all terms of use.

- It could expand access to faster and cheaper payments, especially for remittances

PP doesn't even have to use the term "fast and cheap" as the USP of their product, if used outside the ecosystem of the platform it will depend on the Ethereum network and the user's transaction self-settings.

[hugeblack]

We have more than one topic that talks and discusses the reasons for PayPal doing this, so it is better to lock this topic.

you can update this topic ---> https://bitcointalk.org/index.php?topic=5462386.0

[un_rank]

I am not a fan of closed source, centralized services like PayPal and Stable coins. It is not big news for cryptcurrency as PayPal users could already easily by crypto on their platform and creating a stable coin will not convince those on the fence to buy some bitcoin.

This will have some alight adoption impact but I do not see any long term gain for Bitcoin.

- Jay -

[robelneo]

Do you think this will be a landmark development for crypto going mainstream? Or is the potential overhyped? Share your thoughts and predictions!

Not really a landmark development case, Paypal must change its approach and be more innovative by adapting to the changing times and this will eventually happen, Paypal has lost the competition as the sole and leading payment processor because of the emergence of Cryptocurrency.
Paypal still wants to capture or recapture its market by adapting Cryptocurrency and at the same time taking full control and being centralized and launching its stable coin is the key to this.
Now that they've launched their stablecoin they will have a stronghold in the market, now that they are more in Cryptocurrency I see them launching more products and services related to Cryptocurrency but of course with centralized features.

[PX-Z]

It's just another stablecoin hype, i don't think it will be used by many   when there are already existing ways to transfer fiat money online. Why fiat, i consider stablecoins as fiat in cryptocurrency form since its centralized. And talking about fees, it will be a hell of fees to transfer sooner when the whole eth blockchain is congested which regularly to happen.

[mk4]

It's just another stablecoin hype, i don't think it will be used by many   when there are already existing ways to transfer fiat money online. Why fiat, i consider stablecoins as fiat in cryptocurrency form since its centralized. And talking about fees, it will be a hell of fees to transfer sooner when the whole eth blockchain is congested which regularly to happen.

Though liquidity will mostly be on the Ethereum main chain, stablecoins can be send and received far cheaply on layer-2s like Arbitrum and Base. Just like how you can do so with USDC and USDT.

[NotATether]

This is big news in the cryptocurrency space. Having a major brand like PayPal issue a stablecoin could help drive mainstream adoption.

Mate, we have had USDT for years at this point, and that is what everyone is using. Of course, the company that mints USDT (Tether) cannot be trusted to keep it fully pegged, but do you honestly think that PayPal USD will get huge adoption?

It has a huge disadvantage that it's a completely different token (I don't think even ERC-20, otherwise that would mean Paypal depends on decentralized Ethereum) and hence not accepted as payment by pretty much the entire internet. It would also compete with whatever CDBC the governments are trying to come up with.

Even with none of the advantages, it still carries the negative stigma of being associated with "crypto" so the only realistic outcome I see for this product is a fast and swift demise.

[slaman29]

Yet another centralized crypto is not necessarily good for the industry. I mean, we already have so many options, but I guess after Coinbase and Binance went with their own stablecoin, Paypal also has to do the same.

Remember, exposure is not same as utility. Just like "buying" "bitcoin" on Paypal is not at all the same as owning real BTC.

[yhiaali3]

The effect that I think this move from PayPal will have is the trend towards more centralization and government control, also the elimination of privacy, that's what I think.

Centralized stablecoin is worse than fiat if you didn't know, it's more like CBDC than cryptocurrency. So you don't have to get too excited about such big news.

Yes, Paypal is a very old and great name in the field of online payment services around the world, and this step will bring more users, but they will not be happy anyway due to their use of a central Stablecoin and the application of KYC, AML restrictions.

[PX-Z]

... use of a central Stablecoin and the application of KYC, AML restrictions.

Since paypal is kinda wallet, KYC is required but it's not as worst as other exchanges and wallets though, no selfie or video verification. Just basic info and linking cards and bank accounts.

[Hispo]

... use of a central Stablecoin and the application of KYC, AML restrictions.

Since paypal is kinda wallet, KYC is required but it's not as worst as other exchanges and wallets though, no selfie or video verification. Just basic info and linking cards and bank accounts.

Pretty much depends on whom you ask.
Besides, by linking cards and providing one's address to Paypal, they have pretty much everything they need to search much of one's personal finances (assuming one's bank comply with their information requests).

Who knows, perhaps Paypal is going into crypto now, they may be forced by authorities to enforce even tighter KYC policies, compared to those we have accustomed to see on exchanges. Those policies were implanted on exchanges, because the control over the money belong to the user once crypto leaves to a private non custodial wallet, if Paypal allows to withdraw in the same way, then it will happen what I say about KYC.

[Honyek]

l think it is a good move in the world of digital currency, if properly implemented.  This will motivate the site towards  provision of a more useful service in the area of digital currency. Although there are other existing good stablecoins, this will assist in enhancing the acceptance of stablecoins generally. All in all, perfect implementation is required.

[Woodie]

For a company like PayPal who love to control their ecosystem...I bet you this stablecoin will make it possible for buyers and sellers to be able to chargeback because buyer/seller protection are among their feature products that make PayPal popular .

Btw, when it comes to PayPal and crypto very few countries have access to this and how will this stablecoin work...will it also be exclusive to a few countries  Already seeing red flags coming from these guys 

[PX-Z]

For a company like PayPal who love to control their ecosystem...I bet you this stablecoin will make it possible for buyers and sellers to be able to chargeback because buyer/seller protection are among their feature products that make PayPal popular .

Thinking about that, it's really possible since it runs in eth network with of course smart contracts and with all what have seen from all the existing stablecoins — frozen funds, so expect that to happen.

[bbc.reporter]

News update and Paypal is not only going to attack the stablecoin market.

It was declared that NFTs are dead, however, why is Paypal filing patents for NFT trading and transfer? What I speculate is very clear for much of the people in the forum. What we have witnessed on 2017 with Cryptokitties and Cryptorocks were only the beginning. The bluechip NFTs might become native store of value assets for the cryptospace and DeFi with small marketcap NFTs fighting for their place to get the bluechip classification.



Digital payments giant PayPal has filed a patent application for a system that would enable the transfer and trading of non-fungible tokens (NFTs) within its network. The company’s application would allow users to buy and sell NFTs using fiat currency or other cryptocurrencies directly on PayPal’s platform. This move comes as the popularity of NFTs continues to grow, with more and more artists and creators using them to sell digital assets such as artwork and music. PayPal’s entry into the NFT market could make it easier for both buyers and sellers to use the technology.

Source https://coinpedia.org/crypto-live-news/paypal-seeks-patent-for-nft-trading-and-transfer/

[348Judah]

It's official - PayPal has revealed their plans to roll out a new US dollar-backed stablecoin.

Am not expecting this from a reputable organization like PayPal to take in this offer when bitcoin nis there and they are doing nothing about it acceptance first, aren't their customers not going to be more excited if this development was aimed at bitcoin adoption, this will only limit their capacity towards partaking from the world economy and financial development and advancement with the global adoption of bitcoin from making payments, they may be left out or never be among the early organizations to see the benefits with crypto payments.

[NotATether]

Nobody is going to accept a USD stablecoin from paypal if they can't use it to pay on websites that say "pay with paypal". If this is something that is going to be kept within Paypal's website and not go out to its payment card infrastructure, it's not going to make a dent like credit cards (issued by the banks) did.

[DaveF]

Nobody is going to accept a USD stablecoin from paypal if they can't use it to pay on websites that say "pay with paypal". If this is something that is going to be kept within Paypal's website and not go out to its payment card infrastructure, it's not going to make a dent like credit cards (issued by the banks) did.

IF PP does not charge the stupid 2.9% CC fee or anything else I can see this becoming a PP bubble for things. They get to make entries in a database about what balance you have in your PayPal Digital Dollar account and it only comes to life when you withdraw it.

And I'll bet you that they just sit on the money that stays in their world earning interest on it, while your PayPal Dollar earns nothing.

-Dave

[Pmalek]

Great! That's exactly what we needed. One more stablecoin to add to the already long list of them.

I am not a fan of closed source, centralized services like PayPal and Stable coins.

Well, you just described every popular stablecoin project in existence except DAI. They are all centralized, they are all closed-source, and the issuers can freeze the stablecoin tokens in your address with the right request/paperwork from law enforcement. It doesn't even matter if you store they coins in a non-custodial wallet.