PayPal’s jumping on the crypto train with their very own stablecoin: PayPalUSD, or PYUSD for short. What’s that mean? Well, they’re promising every PYUSD token is backed up by real U.S. dollars. So, in theory, 1 PYUSD should always equal $1.00, and you can buy or trade them right on PayPal’s app or site.
Here’s where it gets cool: With PYUSD, you can send money to friends, pay for stuff at checkout, or even shuffle your PYUSD between PayPal and other digital wallets. And if you’re feeling international, you can swap PYUSD with other currencies PayPal supports.
Now, if you’re new to the crypto world, “stablecoins” like PYUSD are called that because they’re pegged to established currencies, like the good ol’ US dollar or the Euro. But, here’s the tea: even though they’re named “stable,” they can have their drama. Case in point? The rollercoaster rides of Tether and TerraUSD. And while all this is happening, the US government is still scratching its head on how to handle these digital currencies. Exciting times, right?
PYUSD is launching today! If you’re in the US with a PayPal Balance account, you can expect to see it popping up in the next few weeks. And for all you Venmo users (yep, PayPal owns them), you’ll be getting this feature soon-ish.
Now, did we see this coming? Kinda. PayPal has been dipping its toes in the crypto waters for a while, letting users play around with Bitcoin, Ethereum, and a few others. Plus, they scored their New York BitLicense last year, which means New Yorkers can officially buy and sell crypto on the app. And on the grander scale, whispers are going around that the US government might be launching its own digital coin.
Here’s a tech tidbit: PYUSD is built on the Ethereum platform and is being ushered into the world by Paxos Trust Company, a New York firm that’s all about that blockchain life. Although, there’s been a bit of drama, with Paxos recently getting a “stop” sign from regulators about Binance’s BUSD cryptocurrency.
To wrap things up, here’s a nugget from PayPal’s head honcho, Dan Schulman: As the world shifts towards digital currencies, there’s a need for something stable, digital, and linked to good old-fashioned cash, like the US dollar.
