PayPal Launches Its Own Stablecoin PYUSD
The international electronic payment system PayPal has launched the first stablecoin (a type of cryptocurrency) from a major financial company. It is pegged to the US dollar and will only be available in the United States for now.
PayPal USD (PYUSD) is issued by the cryptocurrency company Paxos Trust. A stablecoin can be exchanged at any time for dollars or other cryptocurrencies available on the PayPal network. The digital asset can also be used as a means of payment; soon it will appear in the popular payment application PayPal Venmo, as well as in third-party crypto wallets outside the PayPal network.
The PayPal payment service, which now has more than 431 million users worldwide, began introducing cryptocurrencies in 2020: they are available on the platform for buying and selling, as well as making payments. The administration of the service assumes that the PYUSD token will initially be used in the cryptocurrency sector and web3 applications for trading digital assets and making in-game transactions, and then gradually become distributed as a means for money transfers and micropayments.
Stablecoins play an important role in the crypto asset market. In particular, investors can store their funds in these tokens without worrying too much about price fluctuations. This is very convenient, especially when the cryptocurrency market shows significant price fluctuations.
