PayPal starts Dollar-Stablecoin PYUSD – but why?
08/09/2023 •
PayPal launched the Dollar-Stablecoin PYUSD to enter the cryptocurrency realm and benefit from its potential in payments and transfers. — Most comments show excitement and optimism about PayPal's entry into cryptocurrency and the potential benefits of PYUSD. This suggests that the primary reason for PayPal's move is to leverage the growth and utility of the crypto market.
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| 72% | 183 | Bluesky |
| 28% | 72 |
| 61% | Neutral |
| 25% | Positive |
| 14% | Negative |
| 55% | 😃 Joy |
| 31% | 😱 Fear |
| 15% | 😡 Anger |
| 0% | 😢 Sadness |
| 0% | 🥰 Love |
| 0% | 😯 Surprise |
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Story
- PayPal's PYUSD stablecoin is a significant entry into the cryptocurrency realm, with a mix of excitement, recognition of its pioneering role, and optimism about its potential benefits for payments and transfers. However, there are concerns about its security, the potential risks associated, and criticism towards PayPal's role as a currency issuer.
- Scams and copycat tokens related to PYUSD have been highlighted as a concern, emphasizing the importance of being cautious and double-checking everything.
- The "assetProtection" role in PYUSD, which could potentially wipe out balances in two transactions, is a common concern. This feature is compared to similar attack vectors found in other stablecoins like USDT and USDC.
- PYUSD's introduction is seen by some as PayPal becoming a wildcat bank by issuing its own currency.
- Regulatory oversight of PYUSD stands out as a notable feature, with recognition of its significance as it is overseen by a regulator, making it the first stablecoin issued by a major financial company with such oversight.
- There's excitement about PYUSD's integration with web3 platforms, such as a speculated integration on Twitter/X by Elon Musk.
- There are mixed sentiments regarding PayPal's reputation, including mentions of past actions of freezing customer assets without justification.
- PYUSD is fully backed by USD deposits, short-term Treasuries, and cash equivalents. It is also highlighted that it will be minted on the Ethereum network as an ERC-20 token.
- Users believe that PYUSD will provide more options and facilitate seamless transactions. They also appreciate the versatility and utility of PYUSD as a means of payment and exchange within the PayPal ecosystem.
- Paxos, the company behind PYUSD, has the ability to suspend authorization and transfer functions in the event of a serious security threat, and can freeze or seize assets when required by law.
- Some users see PYUSD as a step towards wider adoption of cryptocurrencies and stablecoins in the consumer-payment sector, showing confidence in the future of digital currencies. However, others are skeptical about its stability and security.