PayPal has introduced a digital currency called PayPal USD (PYUSD). The currency is based on the US dollar and backed by real US dollar deposits, short-term US government bonds, and similar safe assets. This means that for every PYUSD you hold, there is an equivalent US Dollar that can be redeemed.
The purpose of creating PayPal USD is to make digital payments easier. It is ensured that each PYUSD is backed by real US Dollars, making it stable and reliable. It was built in partnership with Paxos Trust Company, a company that helps make sure everything is managed properly.
Starting now and in the next few weeks, if you’re in the U.S. If you’re a PayPal customer in the U.S., you’ll be able to do several things with PayPal USD:
- Move Money: You can transfer PayPal USD between your PayPal account and other digital wallets that work with it.
- Send Money: You can send money to friends and family using $PYUSD.
- Pay for Things: You can use PayPal USD to pay for things when you’re shopping online.
- Exchange Crypto: If you have other cryptocurrencies, you can convert them with PayPal USD.
PayPal head Dan Schulman says the move is important because more people are using digital money, and it is necessary to have a stable digital currency that is pegged to real money like the US dollar.
Paypal USD is special because it is not just any digital currency. It is built on the Ethereum blockchain, a technology that helps keep things secure. This makes it easy for people to use PYUSD in different places and for different purposes. It aims to work smoothly with both regular currency and the new digital currency system (Web3).
This digital currency will help make instant payments in virtual spaces, send money to friends and family faster, make international payments, and support creators and developers. PayPal has a lot of experience with payments, and they’re using that experience to make PayPal USD useful.
Starting in September 2023, reports will be published to show that the money backing PayPal USD is indeed real and sufficient to back all PYUSD in circulation. This is to ensure that everything is transparent and trustworthy.
PayPal is also focused on teaching people about digital currencies. They are working on helping people understand what cryptocurrencies are and how they work. They are also following the rules and working with the authorities to make sure everything is in place.
Therefore, PayPal is using its experience to create a digital currency, PayPal USD, that is pegged to real money. This new currency will make it easier to use digital money for a variety of things, and PayPal is also making sure everything is clear and secure.
This new digital coin will be sold on a 1:1 basis to the U.S. Dollars, which means that every coin you have is worth one U.S. dollar. Can be converted into dollars. It is built in partnership with Paxos Trust Company.
With this new stablecoin, the U.S. Eligible PayPal users can enjoy a variety of features. They can transfer this coin between their PayPal account and other wallets. Apart from this, they can also use it to pay for things while shopping online.
This coin, called PYUSD, is built on the Ethereum blockchain as an ERC-20 token. This makes it compatible with many developers, digital wallets, and applications related to Web3, a new type of Internet technology.
Paxos Trust Company, the entity behind this coin, follows the rules set forth by the New York State Department of Financial Services. To make sure everything is clear and trustworthy, starting in September 2023, they will publish reports every month showing what backs this stablecoin and an independent third party to confirm everything is as it is.
Paxos Thoughts on PYUSD
“Paxos is excited to launch PayPal’s stablecoin, which marks a significant advance in both blockchain technology and the financial sector. This launch demonstrates the practical benefits of blockchain, and we are proud to support this innovative product. PayPal USD represents a major step forward for digital assets and the financial world, and Paxos is honored to be a part of this transformative initiative.”
– Charles Cascarilla, CEO and co-founder of Paxos
