PayPal has completed a long period of careful consideration, ups and downs to introduce its new USD-pegged stablecoin.
The stablecoin, called PayPal USD (PYUSD), makes it easy for users to engage in activities like “buying, selling, holding, and transferring” the token through the payment processor interface.
While these features may seem a bit mundane, resembling the features of a conventional checking account or a real PayPal account containing US dollars, they mark an important milestone after the company’s extensive two-year journey.
PayPal Stablecoin raises alarms about centralization functions
Sarah Hodder, an expert in digital asset law, drew X’s attention to the strong similarities between PayPal’s stablecoin and a central bank digital currency that could facilitate censorship.
PYUSD was officially introduced on August 7 and is issued by Paxos Trust Co., renowned for its holding in Binance USD (BUSD).
Using the Ethereum platform, PYUSD is designed for digital transactions and Web3 applications, and the company reveals plans for its availability to US clients in the near future.
Phelps suggested that this move could serve as a clever ploy by PayPal to minimize its own significant fees, juxtaposing them with the substantial gas costs associated with Ethereum.
In a notable gesture, PayPal itself seemed to recognize the potential for high fees beyond its own platform, suggesting an awareness of the challenges posed by Ethereum’s transaction costs.