Recently, PayPal, the world's largest online payment platform, announced the launch of its own stable currency PYUSD, which is backed by U.S. dollars, short-term treasury bonds and cash equivalents. This is another major move for blockchain technology and the cryptocurrency industry after PayPal opened users to buy, sell and hold cryptocurrencies last year. This is also another major challenge to the Internet financial model after Facebook's Novi wallet launched the Diem stable currency.
This time point is just right. The last two articles mentioned that the Financial Services Commission has officially passed the "Payment Stablecoin Transparency Act" - a huge victory for BTC? What impact will the passing of the Stablecoin Act have? It just happened. Everything has been arranged a long time ago. The next thing is very clear. Everything is arranged at the appropriate time node in the corresponding order. There is no reason why financial dominance cannot be in your own hands.
What does the launch of stablecoin PYUSD mean?
To know the meaning of something we should first understand its characteristics.
The PayPal stablecoin PYUSD is a digital currency that is fully collateralized one-to-one with the U.S. dollar or other Federal Reserve System-recognized assets and can be purchased, sold, held, transferred, and paid on the PayPal platform. It is developed based on the Ethereum network and is issued and managed by the Paxos Trust Company. It is designed specifically for payments and is the only stablecoin supported on the PayPal platform.
It offers a high level of security, compliance and transparency. It is fully collateralized by U.S. dollars or other assets and is regulated and audited by the Paxos Trust Company. It also complies with all applicable federal and state laws, including anti-money laundering, consumer protection, tax, securities, commodities and other laws. This makes it a trustworthy and respected digital currency that does not present credit or compliance risks like some other stablecoins.
It is highly convenient, efficient and low-cost. It enables fast, simple and secure payments on the PayPal platform, whether it is transfers between individuals or settlements between merchants. It can also be transferred and used on other wallets or platforms outside of the PayPal platform. Its transaction fees are also very low or even free. This makes it a time- and money-saving payment method that is not as cumbersome or expensive as some other traditional payment methods.
Just think about it
First, after stablecoins become compliant, do you think there will be a large amount of traditional funds entering the crypto world? Second, considering Paypal's position in the field of Internet online payment, are there enough people covered and reached, and is the traffic large enough? I think you should be able to have your own answer. Why do I want everyone to think about it? Because what I tell you is different from the result of your own thinking.
PayPal’s plan
PayPal launched this stable currency out of its recognition and participation in the blockchain technology and cryptocurrency industry, as well as its innovation and leadership in the Internet financial model. PayPal's goal is to become the world's leading digital payment platform, providing users with more choices, better experience and higher value.
So the question is, do you think it knows that blockchain technology and the cryptocurrency industry are the future trends and development directions in the field of digital payments. It can use its experience, resources and influence in the payment field to plan layout and provide users with more compliant, transparent, liquid and exchangeable digital currency products and functions.
At the same time, with its status, network and partners in the Internet field. If you think about its influence, it can do a lot in this field. Because it understands that blockchain technology and the cryptocurrency industry are a revolutionary and transformative technology and business model that can not only change payment methods, but also the financial system, social structure and even human civilization. It doesn't want to miss this opportunity, nor does it want its users to miss this opportunity.
The path becomes clearer
In June 2019, Facebook (now Meta) launched the Libra cryptocurrency, which ultimately failed under the pressure of regulation.
In May 2020, Bitcoin underwent its third halving
In August 2020, DeFi (decentralized finance) exploded
In January 2021, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs and deemed XRP an unregistered security
In February 2021, Tesla announced that it had purchased $1.5 billion in Bitcoin and supported Bitcoin payments.
In April 2021, Coinbase was successfully listed on Nasdaq as a cryptocurrency exchange.
In May 2021, the People's Bank of China officially released the "People's Bank of China Digital Currency (DC/EP) White Paper"
In August 2021, NFT (non-fungible token) broke out
In October 2021, Meta also announced that it will support blockchain technologies and products such as digital currencies and NFTs
In November 2021, Bitcoin surpassed an all-time high of $60,000
In February 2022, the U.S. Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETF
In September 2022, the U.S. Securities and Exchange Commission (SEC) reached a settlement agreement with Ripple Labs
In June 2023, BlackRock, one of the world's largest asset management groups, submitted a document application for a spot Bitcoin ETF to the US SEC.
In July 2023, the U.S. court ruled that XRP was not a security
Then a few days ago, the "Payment Stablecoin Transparency Act" was passed and today PayPal launched the stablecoin PYUSD
Sometimes people should not blindly see the mountain. Many things often emerge through the accumulation of things you inadvertently do. You should gradually clarify the context of things, and slowly you will see the path of events clearly.
或许冥冥之中早已安排好了一切。