Although cryptocurrencies are not currently at desired levels, major companies have begun accelerating their investments in this area. PayPal, a globally renowned payment tool, is taking a significant step in the cryptocurrency sector.
PayPal Takes a Significant Step in the Crypto Sector with PYUSD
PayPal will become the first major financial technology company to embrace digital currencies as it introduces a stablecoin with a value pegged to 1 US dollar. Following the announcement, the company’s stock value increased by 2.66%, which is also interpreted as an indicator of trust in cryptocurrencies.
Stablecoins are among the most commonly used units for trading in the cryptocurrency market. Tether (USDT) leads in this regard, with USDC provided by Circle also holding a significant share. Additionally, various stablecoins are offered to customers by cryptocurrency exchanges.
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PayPal’s stablecoin, named PayPal USD, is backed by US dollar deposits and short-term US Treasuries and will be issued by Paxos Trust Co. The stable cryptocurrency, named PYUSD, will gradually be made available to PayPal customers in the US.
PYUSD, which will be purchased in exchange for US dollars, can be used on PayPal’s platform to buy and sell other cryptocurrencies, including bitcoin. Paxos, commenting on the matter, stated that the new PYUSD project symbolizes a new era for both the US dollar and cryptocurrencies.
On the other hand, larger companies like Meta have previously attempted to launch their own stablecoins but were unable to obtain the necessary permissions. Stablecoin projects, believed to disrupt global financial stability, will be regulated by the European Union. The new rules for stable cryptocurrencies set by the EU will come into effect starting from June 2024.
With Bitcoin expected to enter a new halving phase in 2024, a resurgence in cryptocurrencies is anticipated. Furthermore, it’s crucial that major companies like PayPal invest in this sector. What are your thoughts on cryptocurrencies and PayPal’s stable cryptocurrency, PYUSD? Feel free to share your opinions in the comments section.
