One of the leading companies for financial transactions in the world, and the leader of “fintech” sector, PayPal announced joining the race of the world’s leading stable currencies (eng. stablecoins). It is about PayPalUSD (PYUSD) stable currency, which will be fixed on 1 to 1 at the price of the US dollar. PayPal USD aims to revolutionize the world of digital transactions, offering its users security, speed and accessibility.
The announcement followed on the X social platform, where the PayPal team announced the reveal today a new stable currency called PayPal USD (PYUSD). According to their statements it is designed for making payment orders and buying other cryptocurrencies, and it is also supported with highly liquid and secured assets.
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. Learn more https://t.co/53RRBhmNHx pic.twitter.com/53ur2KmjU7— PayPal (@PayPal) August 7, 2023
According to a more detailed announcement on PayPal’s official website, the PYUSD stablecoin will enable PayPal users to buy and sell PYUSD stablecoin through PayPal applications, and in addition, the conversion of PYUSD into other cryptocurrencies such as Bitcoin.
According to the official announcement, PYUSD stablecoin should be available soon on to the PayPal application as one of the options for making transactions.
This all comes on the heels of PayPal being called out by Justin Sun, founder of the Tron blockchain, where he called on PayPal to consider issuing its own stablecoin, Tron to the network. In his “tweet”, Justin Sun mentioned the benefits of potential cooperation between PayPal and Trona, highlighting the increasing overlap between traditional financial systems and blockchain technology.
I cordially invite PayPal to consider issuing PYUSD on #TRON, which is Fast, secure, and cost-effective with 12 billion USD daily transactions. Mutual benefits await in the digital payment landscape. Let's collaborate for a thriving ecosystem! ????— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 7, 2023
If this kind of cooperation happens, it could be a big step towards blockchain integration technology into mainstream financial services, which will benefit both corporations and their users.
This could also be one of PayPal’s responses to the extremely poor financial condition of the to the company. PayPal shares fell from a record high of 308 US dollars to the current 64.24 US dollars, which is a drop of 79 percent in just two years. In addition PayPal is in January fired two thousand workers this year, which at the time represented seven percent of the workforce.
In response, the president and CEO of PayPal, Dan Schulman, said that the company progressed by focusing resources on core priorities and correcting the cost structure, but that there is still work to be done.