Follow by Email
Facebook
Twitter
Telegram

Paypal Launches USD-Based Crypto in the Market

Prestigious online financing company PayPal has now dived into cryptocurrency with its dollar-based coin PayPal USD (PYUSD). Linking the PYUSD value to the US dollar creates a less volatile stablecoin.  These stablecoins tie in their value to a fiat currency with a 1:1 ratio and have better market stability than popular volatile crypto options. 

What Separates Stable Coins like PayPal USD?

The value of stablecoins like the ETHi token gets backing from a physical asset like a fiat currency, gold, and other commodities, helping to stabilize the value of the coin. Other crypto coins get their value based on speculations and how much traders will pay, which can change at any time. 

An Alternative Mode of Payment 

PYUSD can be transferred between PayPal accounts and compatible electronic wallets as electronic payment. It is also used for purchasing any PayPal-supported cryptocurrencies.

With a reliable financial base, stablecoins like PYUSD provide a smooth option for beginners in virtual currency. facilitating rapid fund transfers and conducting payments for transactions overseas go seamlessly with this option.  

Why Stablecoins Are Trending (and Some Setbacks) 

Many global investors support currency-based crypto coins like Tether (USDT) and USD Coins (USDC). It offers a reliable form of investment, especially for countries with depreciating native currencies.  

However, a level of risk still lingers with these stablecoins. Transparency on the extent to which fiat currencies back these assets continues to pose as a viable consideration. In fact, the near-total collapse of the stablecoin Terra USD is a solid example. 

Having the Right Financial Base Is the Key

On the contrary, PYUSD is backed by U.S. dollar deposits, treasury bills, and other cash equivalents. Moreover, this makes PYUSD redeemable 1:1 for the U.S. dollars. Moreover, customers who will buy the stablecoins can use it in online transactions not worrying about sudden changes in value. 

Powered by the Ethereum blockchain, PYUSD has a firm foundation in the market. Paxos Trust Company, a firm offering crypto brokerage services for a decade, offers the currency. PayPal launched this stablecoin after gaining experience accepting Ethereum (ETH) and Bitcoin (BTC) transfers. 

The experience of PayPal in both electronic and crypto finance made PYUSD one of the most promising new stablecoins in the market. Additionally, the high potential in crypto finance may become a catalyst in the pursuit of shifting toward digital financing for many people. 

Future Looks Bright for PayPal USD

Cryptocurrency is now a new player in the market with PayPal launching its own PYUSD coin. In fact, this milestone in digital financing ensures the future of the crypto market will flourish. As PayPal invests in its stablecoin, the company continues to change for the future as a trailblazer in the industry of digital finance. 

Related articles

Why Millennials Will Invest More in Crypto 

Recent studies show millennials are more interested in cryptocurrency than all generations. With crypto being a relatively recent innovation, this age group would be more accepting of this technology.  However, why would millennials lean more towards crypto than traditional investment? This article will look at some of these reasons.    Reason #1: Trust in Crypto Higher […]

Learn More

Bitcoin ETF: What You Need to Know 

If you’ve been browsing cryptocurrency-related sites or listening to the news, you may have heard of the term “Bitcoin ETF.” A recent addition to the world of blockchain trading, ETFs offer a new and simpler way to invest in cryptocurrencies.  Here are the basics of Bitcoin ETF – what it is, how it works, and […]

Learn More

CBDC: What’s the Deal and Why Countries Move into It? 

What’s pushing governments to explore CBDCs and how will it affect the global crypto economy? This article will look at these points, so join us and learn more about this exciting cryptocurrency.  

Learn More