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PayPal launches the USD stablecoin PYUSD: Innovation and controversy coexist.
PayPal launches the USD stablecoin PYUSD, attracting longer follow and skepticism
Recently, digital payment giant PayPal officially launched its own USD stablecoin PYUSD, allowing users to buy, sell, hold, and transfer on its platform. This move is an important achievement for PayPal after at least two years of preparation and development.
PYUSD is an ERC-20 token based on the Ethereum blockchain. PayPal states that users can send PYUSD for free to eligible accounts within the United States and can use it for online shopping, just like using regular USD or a credit card. Additionally, users can also use PYUSD to buy other cryptocurrencies supported by PayPal.
However, this newly launched stablecoin has also raised some doubts and concerns. Some social media users pointed out that PayPal used an older version of the programming language Solidity in its smart contracts. Others questioned the management rights of PYUSD, including the ability to pause transfers, freeze addresses, and arbitrarily increase the total supply.
The decision to issue PYUSD on the Ethereum network has also sparked different reactions. Some believe this is an important milestone for Ethereum, while others question that using Ethereum may lead to higher transaction costs. PayPal also acknowledges that using PYUSD outside of its ecosystem may encounter different prices and fees.
It is worth noting that PayPal has already made certain inroads in the cryptocurrency field. The company has previously allowed customers to hold cryptocurrencies such as Bitcoin and Ethereum, and in the first quarter of this year, it safeguarded nearly $1 billion in crypto assets for its clients. PayPal has also invested in several blockchain startups, demonstrating its ongoing follow of the Web3 space.
Although the launch of PYUSD has faced some skepticism, its partner Paxos remains optimistic, calling it "the world's safest dollar-backed digital asset" and believing that it represents the next evolution of the dollar on the blockchain.
However, not all cryptocurrency enthusiasts hold a positive attitude towards this. Some analysts believe that the investments of large tech companies in blockchain do not equate to true innovation and call on investors to follow decentralized cryptocurrencies like Bitcoin.
Overall, the launch of PYUSD by PayPal is a landmark event in the further integration of traditional finance and the cryptocurrency world, but its actual impact and market acceptance remain to be seen.