PayPal he said launching its own stablecoin cryptocurrency called PayPalUSD (PYUSD). The new digital currency is pegged to the US dollar and fully backed by US dollar deposits held by PayPal.
PYUSD will allow PayPal customers to make peer-to-peer payments, purchases and transport balances between PayPal wallets and external crypto wallets. Internet users bankThey will also be able to easily convert between PYUSD and other cryptocurrencies supported by PayPal, such as Bitcoin, Ethereum and Litecoin.
Stablecoins are cryptocurrencies designed to have a stable value, usually backed by fiat currencies such as the US dollar. They aim to provide the benefits of digital currencies while avoiding the volatility commonly seen in currencies like Bitcoin. However, some stablecoins have failed to keep their pledges in recent years, most notably TerraUSD.
PYUSD was developed in blockchain of Ethereum and will be issued by Paxos Trust Company, a regulated blockchain infrastructure provider. The new currency will be made available to US PayPal customers in the coming weeks. It will also be coming soon to the Venmo app, which is owned by PayPal.
The launch of PYUSD comes as no surprise given PayPal's growing interest in services cryptocurrencies. In 2020, the company allowed its users to buy, hold and sell cryptocurrencies within PayPal.
In Europe there is still no such possibility.
