PayPal has launched its own stablecoin PYUSD
Payment system PayPal has launched its own stable cryptocurrency for payments and transfers, PayPal USD (PYUSD), pegged to the U.S. dollar.
The digital asset is backed by cash deposits, short-term treasury bonds and other cash equivalents. PayPal USD (PYUSD) is being issued by cryptocurrency company Paxos Trust. Over time, the stablecoin will be available to all PayPal users from the United States.
Stablecoin can be exchanged at any time for dollars or other cryptocurrencies available in the PayPal network. The digital asset will also be able to be used as a means of payment, soon it will appear in the payment application PayPal Venmo, as well as in third-party cryptocurrency wallets outside the PayPal network.
"The transition to digital currencies requires a stable instrument that is both digital and easily connected to fiat currencies such as the U.S. dollar," said PayPal President and CEO Dan Schulman.
The administration of the service expects that the PYUSD token will first be used in the cryptocurrency sector and web3 applications for trading digital assets and in-game transactions, and then gradually spread as a means for money transfers and micropayments.
With PYUSD, the company aims to cement PayPal's dominance in digital payments by relying on technology that enables instant and cheaper transfers without the need for an intermediary.
PayPal first introduced cryptocurrency services in 2020 when it gave users in the US the ability to buy, hold and sell cryptocurrencies.
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