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PayPal $PYPL-1.8% launches its first digital currency.

PayPal USD, issued by Paxos Trust Company, is a type of digital currency called a stablecoin, which differs from other cryptocurrencies such as bitcoin because their value is pegged to the dollar.

The $PYPL-1.8% posted results a few days ago that were mixed and sent the price down several percent. In addition, news also came out that CEO Dan Schulman plans to retire this year, but there is no replacement for him yet.

But before that happens, PayPal CEO Dan Schulman said , "the shift towards digital currencies requires a stable instrument that is digitally native and easily linked to a fiat currency like the US dollar." And he added that it is "our commitment to responsible innovation and compliance and our track record of delivering new experiences to our customers provide the foundation necessary to contribute to the growth of digital payments through PayPal USD."

PYPL

PayPal

PYPL
$64.59 -$1.21 -1.84%
1 Day
-0.02%
5 Days
-3.98%
1 Month
-8.1%
6 Months
-5.73%
YTD
-5.43%
1 Year
-22.41%
5 Years
-39.59%
Max.
+58.32%

This, of course, comes at a time of heightened scrutiny in the crypto industry, with regulators trying to prevent a repeat of the TerraUSD stablecoin collapse that wiped tens of billions of dollars from the markets in 2022. The latter was also pegged to the US dollar, but unlike PayPal USD was not backed by any dollar reserves. Facebook also attempted this with Project Libra, but it closed last year due to pressure from regulators.

The US House of Representatives Financial Services Committee and its chairman, Patrick McHenry, have since introduced a bill to create a federal framework for stablecoins so they can be integrated into modern payment systems. And he said, "we are currently at a crossroads to keep America at the forefront of digital asset innovation."

I'm curious what this will do to the $PYPL-1.8% share price, it doesn't look promising today and I'm personally not very positive about it. Even though I like the crypto world and the financial world has to evolve too. And I like the idea of pure BTC, which is quite different from stablecoins, so with this project I'm afraid that regulations will rather damage them. But well, maybe it will be the other way around and help them with revenue. Post opinions and whether you would buy $PYPL-1.8%? 😊


Well, that's interesting information. Personally, I don't like these steps very much, and I don't like the idea very much either. Maybe it's because I'm scared of these currencies and I don't move much in the cryptocurrency world. However, I will definitely keep an eye on this.

It's pretty risky, I agree. I like crypto but only partially or unfortunately I would be very careful about it and it would be a big debate, so I will not start it here, maybe later in person at the convention. But just like everything, it depends on how it's handled, in the hands of greedy people there will always be attempts at fraud, money laundering etc...but in the hands of free thinking people it's a fine tool.

Sure, we can definitely talk about it in person then, as I'm quite interested in this topic. I'm not currently interested in cryptocurrencies, but I definitely want to have some cryptocurrency in my portfolio for the future. Otherwise, I totally agree with the idea and the grasp of the thing.

And gee... one stablecoin was here recently and it was quite a racket when it collapsed :-D

Exactly, well, both the USDT and the Pound didn't work out so it's going to be either/or here again. I tried and bought some $PYPL-1.8% but I'm aware of the risk that if it doesn't work out it will send them to the dogs.

If you didn't see Luna fall, check it out... this is a carbon copy :-D

I'd still prefer to see a change in leadership. Anyway, I don't think I can resist under $60. Stablecoin for me, not much. More like nothing. 😁

So the change will take place this year, the ceo announced after the results that he is retiring by the end of the year, he wants to retire but it is not yet known who will take it, it can be bilateral, either it will raise or vice versa. Yes, stablecoins are shit for me, I'm just a btc maximalist and hodler, but I take this that if it succeeds, in the hands of a strong company that will even cooperate with regulators it can be a relatively powerful weapon to attract clientele

Ah, so I missed the information about the CEO change, thanks. Maybe you're right about PYUSD.

Centralized waste.

I agree, it has almost nothing to do with the core meaning of cryptocurrency anymore. That's why I'll always be purely just holding a little something in BTC and have never fallen for altcoins and other shitcoins. I'm just taking this on the fact that if they don't screw anything up and it works, they could profit from it and pick up a clientele, but it's risky lest it turn into greed and a crash as it often does in this world.

PayPal can censor transactions and confiscate stablecoin at any time, so this is essentially a pilot program for the CBDC.

Agreed, it's certainly not and won't be the free and classic BTC that no stablecoin will allow. Overall, the original idea of BTC has pretty much faded away, which is why I'm separating the term nowadays. And even BTC is harder to do anonymously anymore. CBDC will be pushed more and more in my opinion so if it doesn't get screwed up at least the company could profit from it.

I'm not so much concerned about the anonymity in this case, but if we take a purely theoretical approach to the BTC economy, it can be purchased anonymously, for example at an ATM or p2p purchase when you engage in mining, etc. When you make a payment, the transaction is recorded on the blockchain, but as long as none of the parties owning those BTC undergo AML/KYC (+exchange to fiat), your privacy is preserved just like when paying with cash.

After the results, it looks like Déjà Vu at this event. There could be some accumulation around $60 again, but maybe this time it will come down...