PayPal just released its own stablecoin called PayPal USD (PYUSD).
It is a digital currency pegged to the U.S. dollar, with each PYUSD equal to one U.S. dollar.
What's so special about this, you might ask? Aren’t there already many other stablecoins?
Such as USDT, USDC, DAI, etc. So, why is PayPal launching its own stablecoin?
How are they different from other stablecoins?
The current total market value of USDT, USDC, and DAI is 834+261+40=113.5 billion U.S. dollars
PayPal has more than 350 million users and 260 million merchants.
The goal is to let more people use digital currency and make digital currency more convenient, secure and trustworthy. They believe that their stablecoins can provide better user experience, higher efficiency, lower costs, and more compliance.
PayPal USD (PYUSD) can be freely exchanged, transferred, and paid on the PayPal platform, and can also be used on other platforms that support digital currencies.
They will work with other partners to build an open ecosystem so that PYUSD can be interoperable with other digital currencies and legal currencies.
So, what is the difference between PayPal USD (PYUSD) and other stablecoins?
First, PayPal USD (PYUSD) is issued and managed by PayPal, which means they have strong brand influence and credibility. PayPal is one of the world's largest payment platforms.
They are also the first mainstream payment platform to support digital currency payments.
Therefore, it may attract more people to use and accept it.
Second, it is fully backed up in U.S. dollars and regularly verified by third-party auditors. This means they have a high degree of stability and transparency.
Users can check the circulation and reserve amounts of PayPal USD (PYUSD) at any time and use them with confidence.
In contrast, other stablecoins may have problems such as insufficient backup, mixed assets, and untimely audits, causing user distrust and risks.
Third, PayPal USD (PYUSD) is an ERC-20 token issued based on the Ethereum blockchain. This means whether it will support various decentralized applications (DApps) and decentralized finance (DeFi) services in the future. ?
Perhaps we will see PYUSD-based trading pairs appear on major exchanges in the near future.
Overall, I think this is a good thing for the entire circle. More people will pay attention to the blockchain and Web3 by buying PYUSD.
What do you think of PayPal USD (PYUSD)?
Will you use it?
Feel free to leave a message in the comment area to share your thoughts.