Falling Into The World Of Crypto, Paypal Launches PYUSD Stablecoin

PayPal has a PYUSD stablecoin. (Photo; Doc. Invezz)

JAKARTA - The crypto world was enlivened by news on Monday when financial giant Paypal announced the launch of a new US dollar-backed stablecoin. Paypal CEO Dan Schulman spoke about the company's vision to implement this stablecoin as an integral part of global payment infrastructure.

The stablecoin, dubbed "paypal usd (PYUSD)", has been published by Paxos Trust Co. and has full support from US dollar deposits, short-term Treasury securities, and other low-risk assets. With a value closely related to the US dollar, PYUSD is expected to be more accessible to Paypal customers in the United States.

This move appears to be part of Paypal's efforts to strengthen its dominance in digital transactions, with the aim of enabling fast and cheap transfers without intermediaries. Paypal CEO Dan Schulman hopes the PYUSD stablecoin will play an important role in the growing digital payment ecosystem.

It should be emphasized that Paypal has previously entered the crypto realm in 2020 by allowing users to buy, sell and store cryptocurrencies, which provides a significant boost to mainstream adoption of digital assets.

The launch of PYUSD came after news in February reported that Paypal temporarily suspended its stablecoin project due to regulatory issues. At the time, the company expressed its readiness to cooperate with financial regulators if the project continued.

According to a Bloomberg report, the PYUSD stablecoin will initially be used to facilitate cryptocurrency trading and payments within the scope of games/applications. However, Paypal plans that this stablecoin could enable affordable remittances and micro payments in the future.

In addition, this project can also take advantage of other infrastructure that has been built by Paxos, which has published two other stablecoins, namely BUSD and USDP. However, reports reveal that both stablecoins have experienced a significant decline in supply over the past 12 months.

Paxos faces hurdles from the New York Department of Financial Services (NYDFS) ordering companies to stop issuing BUSD in mid-February. Although there are several trips to deal with, Paypal's move marks a major step in the development of the crypto ecosystem and the adoption of digital assets on a larger scale.