One of the world’s leading payments firms is making a new push into crypto with a brand new US dollar-backed stablecoin built on Ethereum (ETH).
PayPal is unveiling PayPalUSD (PYUSD), a stablecoin that aims to keep a 1:1 peg with the US dollar.
In a new announcement, PayPal says PYUSD is designed to improve payments.
“Today, we’re unveiling a new stablecoin, PayPal USD (PYUSD). It’s designed for payments and is backed by highly liquid and secure assets.
Starting today and rolling out in the next few weeks, you’ll be able to buy, sell, hold and transfer PYUSD.”
According to a company blog post, PYUSD will allow PayPal users to buy/sell PYUSD through the PayPal app, convert PYUSD to other cryptos such as Bitcoin (BTC), pay for goods and services, and will allow for quicker transaction settlements.
According to the announcement, PayPal app and site users should begin seeing the option to transact with PYUSD soon.
In response to PayPal’s stablecoin announcement, North Carolina Congressman Patrick McHenry, the Chairman of the House Financial Services Committee, says that PayPal’s move only heightens the need for a regulatory framework in relation to stablecoins.
“This announcement is a clear signal that stablecoins—if issued under a clear regulatory framework—hold promise as a pillar of our 21st-century payments system.
Clear regulations and robust consumer protections are essential to enabling stablecoins to achieve their full potential. That’s why it’s more important than ever that Congress enact legislation to provide comprehensive digital asset regulation, especially for stablecoins.
The bipartisan Clarity for Payment Stablecoins Act recognizes the strong role that states have played in regulating digital asset firms and builds on successful state regimes, like New York’s.
We are currently at a crossroads to keep America at the forefront of digital asset innovation. Congress is making significant, bipartisan progress on legislation to ensure the US leads the financial system of the future. We must finish the job.”
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