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Paypal launches its own stablecoin. The Nasdaq-listed company specializing in offering centralized payment services enters the crypto-industry directly with the issuance of PayPal Usd (PYUSD), a token that replicates the trend of the dollar. It will be issued by Paxos Trust and is fully backed by US dollar deposits, short-term Treasury securities and similar cash equivalents.
The stablecoin will gradually be available to PayPal customers in the United States. With this move, CEO Dan Schulman seeks to consolidate the San Jose (California) company’s position in digital payments by leveraging technology that allows instant transfers at lower costs without a central intermediary.
In the last year on the Stock Exchange, the stock lost 33% and did not participate in the rebound recorded during 2023, for example by Meta (+120%). Just Meta (formerly Facebook) in 2019 had tried to launch its own stablecoin, called Librabut had to backtrack due to regulatory uncertainties.
The firm – which has more than 431 million active accounts globally, first launched cryptocurrency-related services in 2020 – now believes the regulatory environment is “moving towards greater clarity” and sees growing demand for an alternative stablecoin due to market concentration, Jose Fernandez da Ponte, head of PayPal’s blockchain and digital currencies team, said in an interview.
Last month, the House Financial Services Committee approved a bill to regulate crypto stablecoins, sponsored by Patrick McHenry, a Republican from North Carolina. McHenry himself welcomed the launch of PYUSD “It demonstrates that stablecoins, if issued under a clear regulatory framework – have potential for payment systems.”
2023-08-07 19:14:59
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