Stablecoin for the normies... prolly nothing https://www.reuters.com/technology/paypal-launches-stablecoin-crypto-push-2023-08-07/ PayPal launches dollar-backed stablecoin, boosting shares By Jaiveer Shekhawat and Hannah Lang August 7, 20231:52 PM PDTUpdated 9 hours ago The PayPal logo is seen at an office building in Berlin, Germany, March 5, 2019. REUTERS/Fabrizio Bensch/File Photo Aug 7 (Reuters) - Payments giant PayPal (PYPL.O) said on Monday it has launched a U.S. dollar stablecoin, becoming the first major financial technology firm to embrace digital currencies for payments and transfers. PayPal's announcement, which lifted its shares 2.66% on Monday, reflects a show of confidence in the troubled cryptocurrency industry that has over the last 12 months grappled with regulatory headwinds that were exacerbated by a string of high-profile collapses. While stablecoins - crypto tokens whose monetary value is pegged to a stable asset to protect from wild volatility - have been around for years now, they are yet to successfully make headway into the mainstream consumer payments ecosystem. Instead, consumers mostly use stablecoins as a means to trade other cryptocurrencies, like bitcoin and ether. The world's largest stablecoin is Tether, followed by USD Coin, which is issued by crypto provider Circle. Prior attempts by major mainstream companies to launch stablecoins have met fierce opposition from financial regulators and policymakers. Meta's (META.O), then Facebook, 2019 plans to launch a stablecoin, Libra, were foiled after regulators raised fears it could upset global financial stability. A string of major economies, from Britain to the European Union, have since laid out rules to govern stablecoins. The EU's policies will come into force in June 2024. "PayPal isn’t quite as polarizing as Facebook, but it’s a high-profile name that will surely get attention on Capitol Hill, and from the [Federal Reserve] and [Securities and Exchange Commission]," said Ian Katz, managing director of Capital Alpha Partners, in a note. Last month, the U.S. House Financial Services Committee also advanced a bill to establish a federal regulatory framework for stablecoins, which will focus on rules for the registration and approval process for stablecoin issuers. In a statement on Monday, Representative Patrick McHenry, the committee's Republican chair, said that PayPal's announcement is an indication that stablecoins "hold promise as a pillar of our 21st century payments system." "We are currently at a crossroads to keep America at the forefront of digital asset innovation. Congress is making significant, bipartisan progress on legislation to ensure the U.S. leads the financial system of the future," he said. PayPal's stablecoin, dubbed PayPal USD, is backed by U.S. dollar deposits and short-term U.S Treasuries, and will be issued by Paxos Trust Co. It will gradually be available to PayPal customers in the United States. The token can be redeemed for U.S. dollars at any time, and can also be used to buy and sell the other cryptocurrencies PayPal offers on its platform, including bitcoin. "PYUSD is the first of its kind, representing the next phase of U.S. dollars on the blockchain," Paxos posted on messaging platform X, formerly known as Twitter. "This is not just a milestone moment for Paxos & PayPal, but for the entire financial industry." Visa (V.N) also said in 2021 it will allow the use of cryptocurrency to settle transactions on its payment network.
Issued by Paxos, the same company that got in trouble for issuing Binance Stablecoin BUSD, and also is the issuer for Gemini stablecoin GUSD and its own branded stablecoin Pax dollar USDP This PayPal stablecoin PYUSD is something special, lmao
PYPL chart - nice mountain shape with twin peaks. Who knows, PYPL might be gone in a few years' time.
Do their TOS still demand the right to take your money if you say something they don't like? I was a PayPal user for decades until they turned into fascists. You have to be a special kind of high idiot to put up with that level of crazy.
They took it out because of the backlash, but saw a tweet that it was put back Early bitcoiners still remember PayPal locking user accounts because of transactions linked to purchase of bitcoin
I at least appreciate their consistency. I have read too many reports of accounts being frozen while a dispute is on-going. I think even linked bank accounts might have also been frozen as a result if I remember correctly. So if their stablecoin had no way to be frozen, it would be very much against their ethos.
The problem with Libra, is it wasn't even de-centralized IIRC? It's been years now since I read the book on that shit-coinnery though. But I certainly do NOT want to waste those brain cells all over again on a re-read. I believe the real worry, was that if you posted something Mark Shitterberg didn't like, you could lose access to all your money as well, and not just your freedom of speech (which has proven correct to date). Even if you didn't post something that upset Shitterberg, just the fact a relative did is enough to get you financially and politically screwed. Why have someone control not just what you say, but also your financials as well? Seems to be a way to double-down on stupidity. Wokenomics as intended.
It's also the same company that IBKR goes through when you purchase crypto on their platform. If it's good enough for hedge fund traders, then I'm not too worried. Thomas Peterffy trusts them. Also, Paxos has some interesting stuff, I've been waiting on the sidelines for their gold-backed Paxos-G to go down in price. The problem is gold still is up at 2k per troy ounce.
i've been a programmer for over 15 years and paypal is integrated everywhere in so many systems. it's a staple of online payment processing, similar to gas cars are a vehicle to get around. i'd venture to say it will be around long after we're gone..
I'd have to look to confirm, but I've been told Cathy did a 180 on Paypal due to CashApp, and the pulling of her funds is a big part of PayPal's drop. There is some interesting premium on PayPal short-puts if you are a believer in LEAPs, but there already is so much competition in the FinTech space, with FedNow about to really put the pressure on. This is what worries me. Who knew the ancient US financial system could finally get the ball rolling on modernization? That wasn't quite priced in.