PayPal, the global payments giant, is set to revolutionize the digital currency landscape once again. The company announced its plan to issue a dollar-pegged stablecoin based on the Ethereum blockchain: $PYUSD
This innovative token, initially available on PayPal and later on Venmo, will allow users to seamlessly convert their digital assets into U.S. dollars at any moment.
According to the company’s press release, PayPal USD (PYUSD) is backed by short-term Treasury securities, dollar deposits, and cash equivalents. The coin will be released as an ERC-20 token on the Ethereum network.
The stablecoin will be accessible to eligible U.S. citizens and will allow users to convert any of PayPal’s accepted cryptocurrencies into and out of PayPal USD at vendor checkout points.
They will also be able to send person-to-person payments using PYUSD and transfer PayPal USD between PayPal and compatible external wallets.
Ethereum’s Potential Surge as Internet’s Money Layer Faces Criticism Amid PayPal’s PYUSD Launch:
The majority of the cryptocurrency world has praised PayPal’s recently revealed stablecoin, claiming it will be beneficial for the entire industry. Additionally, the fact that it is being launched on Ethereum supports the idea that the network is becoming the internet’s financial layer.
Global payments leader PayPal announced the release of PYUSD, a new stablecoin tied to the dollar, on August 7. Most members of the crypto community have responded positively, however others have expressed expected worries about centralization.
The PayPal stablecoin will be based on Ethereum, reinforcing its properties as the internet’s financial layer, said Ryan Sean Adams.
Ryan Sean Adams is the Founder of Mythos Capital, an investment company that holds crypto assets and services crypto network.
“PayPal has 430 million active accounts. Sleep on this if you want. Ethereum is becoming the money layer of the internet.