According to an official release, the launch of stablecoin by PayPal, a financial technology platform, might contribute to the collaboration of Web3.0 and fiat for users, merchants, and developers. Paypal is expected to be the first one to launch its stablecoin which can be used for retail purchases, P2P transfer and wallet-to-wallet transfer, among others.
As per the official release, PayPal USD will be backed by US dollar deposits. The launch of PYUSD is expected to improve the global payment system and might help stablecoins to improve the global financial system. It is believed that the move will be able to create an environment of trust and transparency by improving the collaborative effort of Fintech and crypto.
It is expected that the move might make the financial system less dependent on centralised banks. With insights from an official release, maintaining customer trust will need PayPal to publish regular proof of reserve reports and provide security for user funds. Supposedly, the ability to be compatible with different wallets and custody platforms might allow faster adoption of PYUSD.
Follow us on Twitter, Facebook, LinkedIn
