Payment service PayPal introduced its own stable cryptocurrency pegged to the US dollar – this digital asset is backed by cash deposits, short-term government bonds and other cash equivalents. Over time, the stable cryptocurrency will be available to all PayPal users in the US.
Issuing PayPal USD (PYUSD) is the cryptocurrency company Paxos Trust. The cryptocurrency can be exchanged for dollars or other cryptocurrencies available on PayPal at any time. Digital assets will also be able to be used as a means of payment; it will soon appear in PayPal's popular payment app Venmo, as well as in external crypto wallets outside the PayPal network. The payment service PayPal, which now has more than 431 million users worldwide, began to introduce cryptocurrencies in 2020: it is possible to buy and sell them on the platform, as well as make payments. The management of the service expects that the PYUSD token will first be used in the cryptocurrency sector and web3 applications for trading digital assets and making game transactions, and will gradually become a common means of money transfers and micropayments. Cryptocurrency experts have long argued that stable cryptocurrencies are the best tool for making cheap, instant money transfers and payments. But their spread is hampered by central banks that issue official digital currencies, as well as the failures of private cryptocurrency projects, the biggest of which was the collapse of Luna and TerraUSD last May. In February, the New York Bureau of Financial Services (NYDFS) ordered Paxos to stop issuing the BUSD stablecoin for the Binance crypto exchange. PYUSD should not face what BUSD did: PayPal received a license for a cryptocurrency project in New York, and the stable cryptocurrency will be a regulated product. Starting in September, Paxos will publish monthly reports detailing the assets that cover PYUSD.
