Recently PayPal has broken ground in the stablecoin sector by officially launching its own digital currency pegged to the US dollar. The financial service has dubbed its stablecoin ‘PayPal USD’ or ‘PYUSD’, and will be primarily used to be exchanged for its fiat currency counterpart, as well as to be used to buy and sell other cryptocurrencies, such as Bitcoin.
What does this mean for the growth of digital currencies and how has it been received amongst key political figures?
Dan Schulman, President and CEO of PayPal, stated “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar.
“Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”
The decision of PayPal to launch a stablecoin could be a pivotal step for the stability of the crypto sector. No wonder it deserves a hefty discussion, which is what we are bringing to you in the latest episode of the iGaming Daily podcast.
Podcast host James Ross with Joe Streeter, Editor at Payment Expert, and Business Journalist Callum Williams went over the steps taken by PayPal and where could those steps lead with regards to the gambling industry further embracing the digital currency, and taking on the regulatory challenges to mitigate the speed of the expansion.
James Ross emphasised that he believes stablecoins can introduce a level of stability that is essential for the crypto to hit the mainstream. He detailed that the move can usher in an era without volatility for crypto.
Callum Williams also explained his belief that the increasing focus on stablecoins can bring crypto back to its ‘core purpose’ of being a payment instrument, rather than a ‘vehicle for investment’.
Nonetheless, Joe Streeter highlighted that a balance needs to be found to ensure that CBDCs and stablecoins don’t stifle creativity and innovation within the crypto space.
Ross also expressed his disbelief that crypto can be fully embraced by the mainstream within the next five to 10 years, as he did state that the US taking the lead in terms of regulation can be a significant step.
Williams revealed that the US remains behind the UK and the EU when it comes to the formulation of a regulatory framework for cryptocurrencies.
The lack of regulation is what caused Democrat Maxine Waters to criticise PayPal’s move and its impact on the payment space.
She stated: “Given PayPal’s size and reach, the federal oversight and enforcement of its stablecoin operations is essential in order to guarantee consumer protections and alleviate financial stability concerns.”
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