PayPal and Paxos launch new stable currency

 

PayPal and Paxos

launch new stable currency :

On Monday, PayPal announced the rollout of PayPal USD (PYUSD), a stable US dollar-denominated currency based in Ethereum produced in partnership with the New York-based Paxos Trust.

PayPal says the new stablecoin will be "rolled out in the coming weeks" and will be available to users in the United States where digital asset transactions are legal.

PYUSD :

1. is promoted as a good thing to
2. send payments from person to person
3. transfer to outside wallets or finance purchases

Although PayPal will convert PYUSD into Fiat currency

at the time of purchase as part of its "Checkout with Crypto" feature

Users :

• can convert PYUSD to

• other digital assets supported by PayPal

• (BTC, BCH, ETH and LTC) and return again.

PYUSD will be provided "soon" on Venmo

the P2P mobile payment service owned by PayPal.

To encourage adoption :

PYUSD will be made available to digital asset exchanges

although the fact that Huobi's struggling stock exchange

was the first to welcome the new stablecoin is not the most encouraging sign.

PayPal CEO Dan Schulman said:

"The continuous shift towards cryptocurrencies requires a stable tool that is digitally original and easily connected to paper currency like the US dollar."

Starting next month :

Paxos will publish a monthly reserve report detailing the assets supporting PYUSD, which will consist of "US" dollar deposits, US Treasury bonds and similar cash. "

PayPal began allowing customers to buy digital assets two years ago

and PYUSD has been in the works for some time.

However :

PayPal stopped for a while in February after the New York Department of Financial Services (NYDFS) ordered Paxos to halt further stablecoin operations from BUSD.

Originally :

BUSD was an Ethereum-based partnership between

Paxos and Binance to share digital assets

But the New York Department of :

• Financial Services discovered that Binance

• was minting a separate "Binance-Peg BUSD"

• that on multiple occasions had a billion

or so codes in circulation without any legal reserves whatsoever.

The U.S.

• Securities and Exchange Commission (SEC)

• warned Paxos that it viewed BUSD

• as an unregistered securities and was considering legal

action against Paxos for failing to register the token.

Paxos :

"categorically" disagreed with the SEC's view

pledging to "sue aggressively"

if the SEC filed civil charges against the company.

Later that month :

Paxos CEO Charles Cescarella said his group was in

"constructive discussions" with the SEC.

Charles Cescarella clearly felt emboldened enough by these discussions to pursue his partnership with PayPal - or made the necessary adjustments to Gensler-compliant PYUSD.

In June :

the SEC filed civil charges against Binance

for selling unregistered securities, including BUSD.

The SEC alleged that :

Binance promoted the profit potential of the "BUSD ecosystem"

 including the BUSD reward program, which included the pooling and investment of BUSD's reserve assets, and then passing on some profits to program participants.